Monarch Alternative Capital LP is betting roughly $600 million in three bankruptcy cases that the travel industry will bounce back from the coronavirus pandemic, WSJ Pro Bankruptcy reported. The distressed-debt investor, which has about $9 billion in assets under management, is working on deals to acquire 15 hotels, including operating rights to the Queen Mary in Long Beach, Calif., for $470 million as well as the Crowne Plaza Orlando Universal Boulevard in Orlando, Fla., for $35.7 million. Monarch is also positioned to take over retail space in the renovated George Washington Bridge Bus Station in northern Manhattan, according to court papers filed Thursday. The deals come amid indications that tourism and travel are picking up as the COVID-19 vaccine rollout continues across the U.S. Passenger volumes at U.S. airports hit a fresh pandemic high this week, with more than 1.5 million people passing security on Sunday, according to the Transportation Security Administration, although volumes remain down about 40% from 2019 levels. While Monarch has traditionally invested in the debt of distressed and bankrupt companies, it has grown increasingly interested in real estate. The firm said on Friday in announcing the Crowne Plaza Orlando deal that it sees significant opportunities in the hospitality sector despite its setbacks.
