{"id":770,"date":"2009-07-21T09:19:36","date_gmt":"2009-07-21T14:19:36","guid":{"rendered":"http:\/\/www.orbitz.com\/blog\/?p=770"},"modified":"2016-12-17T03:41:00","modified_gmt":"2016-12-17T09:41:00","slug":"on-the-road-finance-woes-for-two-socal-hotels","status":"publish","type":"post","link":"https:\/\/www.orbitz.com\/blog\/2009\/07\/on-the-road-finance-woes-for-two-socal-hotels\/","title":{"rendered":"On the Road: Finance woes for two SoCal hotels"},"content":{"rendered":"

<\/em><\/p>\n

\"St.<\/em><\/em>

St. Regis Monarch Beach Resort<\/p><\/div>\n

By Joe Brancatelli<\/em><\/p>\n

THE EX FILES II<\/strong><\/p>\n

Maybe ‘W’ Stands for ‘Walking Away’:<\/strong> The owner of the W Hotel in San Diego<\/a><\/strong> is taking the extraordinary step of walking away from the property. Sunstone Hotel Investors has forfeited the 258-room property to lenders<\/strong> after it failed to reach a compromise on a $65 million mortgage. Sunstone bought the hotel for $96 million in 2006, but it isn’t generating enough revenue to cover the monthly mortgage payment.<\/p>\n

And not too far up the Southern California coast, the now-notorious St. Regis Monarch Beach<\/strong><\/a> is facing a foreclosure auction<\/strong>. The companies that own the 8-year-old resort are in default of a $70 million loan and the 400-room property is due to go on the block in July.Any buyer would also get the resort’s golf course, but would be on the hook for $230 million in mortgages. In case you’ve forgotten, the St. Regis Monarch Beach is the hotel where AIG, fresh from an $85 billion taxpayer-funded bailout last fall, spent more than $440,000 for an incentive trip.<\/p>\n

Related Orbitz resources:<\/strong><\/h3>\n