Foreclosure comes to St. Regis resort, seized by Citigroup. Resort where AIG held retreat

[Liberal_in_LA]

http://www.latimes.com/business/la-fi-stregis-foreclose21-2009jul21,0,3851880.story

The St. Regis Monarch Beach, the Orange County luxury resort where American International Group Inc. sponsored a luxury retreat just days after accepting a federal bailout, has been seized by Citigroup Inc.

The hotel will continue to operate as a St. Regis.

St. Regis resort in Dana Point faces foreclosure sale

"The acquisition will have no impact on the hotel, golf club or beach club," Citigroup said today. "Starwood's St. Regis brand will continue to be responsible for the day-to-day management of the properties."

Citigroup's takeover is a sign of how deeply troubled the upscale lodging industry is now, said consultant Alan Reay of Atlas Hospitality Group. High-end hotels across the country have been hammered by a cutback in business and leisure travel.

Resorts such as the St. Regis, which cater to wealthy travelers and the high-end corporate retreat business, have seen some of the steepest declines in revenue.


"It's not good for anyone when a hotel goes back to the bank," Reay said. He estimated that the hotel was carrying $300 million worth of debt but is probably not worth much more than $100 million now that property values have fallen in the recession.

[alstephenson]

1. Talk about "full circle"...

[Liberal_in_LA]

3. I know! Irony!

[Bluzmann57]

2. A company that got bailout $ foreclosed on a resort

where another company which got bailout money had vacations, er, retreats, er, getaways? Very strange. That might make an interesting miniseries or soap opera.
"As the stomach turns" or something like that.

[The_Casual_Observer]

4. That place was a joke. They wanted something like 500+ a night

to stay in the middle of no-place far on the other side of a busy highway from the beach.

There is already a Ritz Carlton on the ocean side of the highway, directly across from that place & I doubt that they are doing all that well either.

[Liberal_in_LA]

5. Bet u could now get a room for $100 per night thru priceline

[The_Casual_Observer]

6. But who would want it? There is nothing to do down there except

look for a parking place in Laguna Beach. Oh, and buy $22 martinis and $400 meals.