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GlobeSt.com UPDATE: Judge Rejects Hotel Developer's Optimistic Occupancy Numbers

ORLANDO-Controversial Brazilian developer/owner Sergio Naya projects his ailing two-building Sandy Lake Towers, in south Orlando will reach 65% occupancy by March if he can get a $7 million loan to complete the second tower, under construction for the past 10 years.

By Alex Finkelstein | Updated on December 05, 2001

ORLANDO-Brazilian condo-hotel developer Sergio Naya is pitching but U.S. Bankruptcy Judge Karen S. Jennemann isn’t catching his line that the second unfinished 17-story, 204-suite building at Sandy Lake Towers in south Orlando could be at 65% occupancy by March if a $7 million construction loan is approved.

The judge finds the occupancy projection unrealistic since the average occupancy among Orlando’s 110,000 hotel and motel rooms in October, the last audited month, is 68%, according to Smith Travel Research of Hendersonville, TN. Sandy Lake Towers No. 1, completed in October 1999, is at 15% occupancy, up from 11.5% occupancy in October.

The court is not only denying the loan deal Naya’s Orlando firm, Sandy Lake Properties, wants to make with Dallas-based Cypress Lending Group Ltd., but may order the 17-story, 204-unit Tower No. 1 be shut down permanently and the property sold at auction. Judge Jennemann will make that decision at a Dec. 20 hearing.

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