Hotel Capital Structure in a Tough Environment?

The Ritz Carlton collapsed early in the financial crisis because of a bad capital structure. A hotel has the ultimate short duration lease, and if you're not operating it well or if those rates come under pressure, it can be really tough if you have capital. If you own a great asset, if you have a great capital structure, that can be a really good thing when rates are rising. It's just an example of a capital structure that wasn't prepared to withstand.