The parent company of Omni Hotels & Resorts would have first rights to West Virginia’s Greenbrier Resort, its 710 rooms and four golf courses if the family of U.S. Senator Jim Justice defaults on the debt.
Justice and his family bought the historic Greenbrier Resort in White Sulphur Springs out of bankruptcy in 2009.
Carter Bank & Trust of Martinsville, Va., was the major lender, and financial conflict between the bank and the Justice family over and over during the past decade. Carter regularly reported that the loans were considered “nonaccrual status,” drawing no interest payments and that the debt had become an anvil.
Earlier this month, Carter Bank sold the loans to “an unaffiliated third party,” according to a filing last week with the U.S. Securities and Exchange Commission. The loan principal was $209.48 million, and Carter received $289.48 million in cash in the transaction.
The company that bought the debt was TRT Holdings, owned and operated by Dallas billionaire Robert Rowling and his son Blake.
Jill Justice, the senator’s daughter who is president of the Greenbrier Hotel corporation, in a statement acknowledged closing the books on the Carter Bank relationship while starting talks with TRT Holdings.
“We can confirm that an affiliate of TRT Holdings has acquired The Greenbrier’s loans from Carter Bank & Trust. As is well known, our relationship with Carter was a challenging one for many years,” Jill Justice said.
“We have already been in communication with the new lender and look forward to more discussions with them soon.”
TRT’s primary assets include Origins Behavioral Healthcare along with the luxury hotel group.
Omni operates more than 50 unique hotels and resorts across North America, known for authentic local experiences, personalized service and a distinct loyalty program.
Omni’s corporate communications acknowledged the sale last week but described it in terms of an investment that could yield dividends.
“A subsidiary of TRT Holdings, Omni Hotels & Resorts’ parent company, acquired the first-lien debt on The Greenbrier Resort in White Sulphur Springs, West Virginia, as an investment,” said Tiffani Cailor Torrence, public relations and corporate communications director for Omni Hotels & Resorts.
“This transaction was made as part of TRT Holdings’ broader business of investing across a diverse portfolio of assets.”
That approach could change, though, if payments are missed.
The hotel and associated properties have shown several signs of strain.
In late 2024, The Greenbrier was listed for auction on the courthouse steps because of default on the terms of a longstanding loan through the financial giant JPMorgan Chase that was shifted to a credit collection company. Financing to satisfy the debt came through an agreement with Fortress Investment Group, an enormous equity firm.
Late last year, the West Virginia Tax Division has filed liens on The Greenbrier Hotel and Greenbrier Sporting Club over sales taxes collected but not remitted. Since then, some of the liens have been withdrawn — but new ones added, like a March 19 filing amounting to almost a half-million dollars, $459,606.48.
The first-lien debt position by Omni’s parent company represents significant leverage over the hotel’s financial future.
A first-lien debt position is the highest-priority secured claim on a borrower’s collateral, ensuring the lender is paid first from asset sales or foreclosure proceeds if default occurs. It represents the primary debt, like a first mortgage.
Forbes, the venerable business and finance publication, interviewed Blake Rowling, the 42-year-old chief executive of TRT Holdings. His father, Bob Rowling has a net worth of $8.8 billion, Forbes indicates.
Blake Rowling told Forbes that he and his father “have had an admiration of the Greenbrier forever. It’s one of America’s greatest resorts.”
He described the debt purchase in terms of an investment and cautioned that ownership is not changing hands yet.
“We’re just a lender right now. We might just get paid off on the note,” Rowling told Forbes. “We will be working with Senator Justice to see what we can do.”
One of Omni’s properties is The Homestead Resort & Spa in Hot Springs, Va. The Homestead is a National Historic Landmark and has been in operation since 1766. Omni acquired the historic property in 2013 and has invested more than $150 million in renovations, including major upgrades to guest rooms, meeting spaces, and historic areas.
It’s a drive of less than an hour, just over 36 miles, between Hot Springs and White Sulphur Springs, almost entirely along Interstate 64.
Blake Rowling told Forbes that the resort properties can benefit from adding regional scale and expanding tour packages: “The pie gets bigger.”
Omni’s structure is to both own and operate its properties, most of which are owned fully by TRT.
But partnerships have a role to play too, Omni’s chief executive, Kurt Alexander, told the hospitality trade publication “Hotel Investment Today.”
“We have skin in the game in all but two hotels,” Alexander told the publication in 2023. “The next phase of growth for us is going to be more around partnerships.”
He said institutional owner partners typically value core operating performance and cash-generating ability.
“I think they would love to have a 50% JV partner like Omni come in, sit alongside them, be aligned on interest and drive more revenue,” he said.