HONOLULU (HAWAIINEWSNOW) - The Dubai financial crisis may be easing. Dubai World, the Emirate's real estate arm, which said last week it needs more time to repay $59 billion in debt, now says it really needs only to restructure less than half of that debt, $26 billion, and, it's in talks with banks to do that.
So the biggest stock market slump in months may turn out to be a great big 'nevermind'. Dubai World is a player in the US hotel business. It owns the Mandarin Oriental New York, and half of the Fontainebleau in Miami Beach. Dubai World owns the City Center Casino & Resort in Las Vegas, which opens to the public today.
Fitch ratings says US hotels generally have lost half their value since peaking in 2007. That's temporary, of course. Their value will rebound in better times when there is easier credit. Prices are artificially low because no one is selling hotels today unless they absolutely have to, and then they take what they can get.
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