OC hotelier Tushar Patel delinquent on loan tied to Anaheim Marriott

Hotel near Disneyland made its last payment on $80M debt in December

Orange County Hotelier Falls Behind on Anaheim Marriott Loan
Tarsadia's Tushar Patel and the Anaheim Marriott at 700 W Convention Way (T2 Hospitality, Marriott)

Tushar Patel, the Orange County hotelier who once ranked as the second-largest property owner in Anaheim behind Disney, has fallen behind on an $80 million loan tied to the Anaheim Marriott. 

An entity controlled by Patel is more than 90 days delinquent on the loan, which currently has a balance of $69.8 million, according to Trepp data. The last payment on the debt came through in December. 

Patel did not respond to a request for comment. 

JPMorgan Chase Bank originated the loan in 2014 to refinance the 1,030-key hotel at 700 West Convention Way. The debt was then packaged into a commercial mortgage-backed securities deal. 

The fixed-rate loan has an interest rate of 4.8 percent. That’s lower than the secured overnight finance rate — a standard benchmark rate for lending — over the last year.

The loan was modified in 2020, when Patel requested financial relief in light of the pandemic, according to Trepp data. At the time, the property, which sits beside the convention center and just south of Disneyland, was only making about half of what was needed to service the debt. 

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But the property’s income snapped back with a vengeance. By 2023, the hotel was making five times what was needed to service the debt. It’s unclear what drove the delinquency. 

The loan is set to mature in June, though the Patel entity has extension options. 

Patel bought the property in 1999 for about $80 million, the Los Angeles Times reported at the time, marking his biggest deal to that point. 

Tarsadia Investments, the Patel family’s main company, owns the Springhill Suites by Marriott in Anaheim and a Residence Inn by Marriott in Anaheim. It has other hotels in Palm Springs, San Diego, Sunnyvale and Palo Alto.