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Adam's Mark Cancels Sale of Six Hotels; Buyer Cries Foul

NEW YORK CITY-The hotel chain pulls the plug after suitor Columbia Sussex Corp. misses a due diligence deadline. Columbia claims it needed a one-week extension and says the seller is "completely unreasonable.

By Glen Thompson | Updated on January 11, 2002

NEW YORK CITY-Adams Mark president and CEO Fred S. Kummer has cancelled plans to sell six hotel assets to Fort Mitchell, KY-based Columbia Sussex Corp. Real estate investment bank Sonnenblick-Goldman, based here, was handling the transaction.

According to a statement on the St. Louis-based hotel chain’s Website, Adam’s Mark about-faced on the deal after Columbia missed a contract deadline for completing its due diligence. But Columbia Sussex director of development Joe Yung says Adam’s Mark is “completely unreasonable” in declining to proceed with the sale.

“We asked for more time to complete surveys and to finish due diligence, which turned out to be more of an issue than at first expected with the myriad of litigation that is on the properties,” Yung tells GlobeSt.com. “We asked for seven days and we were not given the time.”

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