Today’s L.A. Times is reporting that the St. Regis Monarch Beach in Dana Point is close to being foreclosed – their third mortgage of $70 million is in default:

http://www.latimes.com/business/la-fi-numonarch10-2009jun10,0,7571143.story

An excerpt:

Business is so bad — and funding so expensive — that hardly any hotels are being sold these days, and most are now worth 50% to 80% less than at the peak, said hotel broker Alan X. Reay of Atlas Hospitality Group in Costa Mesa.

Just this week, Sunstone Hotel Investors Inc. said it would turn the trendy W Hotel in downtown San Diego over to its lenders, part of a growing trend that Reay said was a “bloodbath.”

The St. Regis — which has several restaurants, a golf course and a private beach club — has been hit by a steep drop in bookings, according to the people with knowledge of the situation.

Built by the Makarechian development family of Newport Beach, the property is current, for now, on two other mortgages totaling $230 million on the 400-room hotel and golf course, these people said, speaking on condition of anonymity because of the sensitivity of the situation.

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Jim the Realtor
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