Dubai World borrowed billions of dollars to acquire some of the most high-profile commercial developments in the United States in recent years, and it could be forced to sell them at a loss if the Persian Gulf conglomerate can't restructure its debts.
Dubai World said last week it would seek a six-month delay in paying creditors on nearly $60 billion it owes. The desert emirate racked up the debt during its own real estate bubble that popped with the global recession.
Among Dubai World's U.S. assets are several luxury hotels — a sector that has been one of the hardest hit by the fallout from rising unemployment and plunging real estate values this year.
Due to high tourism rate in US, number of investors in Dubai have invested in US hotels. The major reason behind this is the great returns.
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