Hotel Casualty of Lehman Collapse?
The Desert Sun in Palm Springs, Calif. is reporting that all work on the new Ritz-Carlton Rancho Mirage was halted “indefinitely” Wednesday, causing many to speculate the stoppage was due to the collapse of Lehman Brothers.
Gencom Group, the Miami-based development company heading the project, has Lehman Brothers listed on its Web site as one of its “many well-known investors” that have made hotel and residential developments possible. The $500 million Ritz-Carlton Rancho Mirage project sits on 40 acres once occupied by the former Lodge at Rancho Mirage.
A spokeswoman for Gencom said she couldn’t confirm speculation about Lehman, which may have originated with construction workers who lost their jobs Wednesday. Instead, spokeswoman Landry Fuller said construction was stopped so officials could determine an opening date and prioritize phases of construction.
Uh huh.
Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.
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