Heard about the St. Regis Monarch Beach? How about the Four Seasons Maui?

An astute property owner in Kalihiwai Ridge called my attention to this story. I had missed it:

From: http://www.hotelchatter.com/story/2009/6/10/12339/0966/hotels/What_Will_Happen_to_the_Troubled_St_Regis_Monarch_Beach_

"What Will Happen to the Troubled St. Regis Monarch Beach?"

June 10, 2009

[Photo: Don Kelsen / Los Angeles Times]

Whoa. The super-popular St. Regis Monarch Beach — also known as that hotel where AIG execs blew 500K on a corporate retreat just after the group got a federal bailout — is now facing foreclosure, the LA Times reports.

Per the LAT:

The companies that own the resort are in default on a $70-million loan from Citigroup Global Markets Realty Group, people knowledgeable about the debt said Tuesday.

Negotiations continue in an effort to avoid an auction, according to those sources. But unless something is worked out, the St. Regis will go on the block July 7, to be sold to the highest bidder, according to a "terms of public sale" document obtained by The Times.

Yeah, uh, anyone want to buy this bad boy? Anyone?

The property is reportedly current on two other mortgages totaling $230 million, and owners had "refinanced the property and incurred $300 million in debt in 2007" — but, at the time, the hotel's revenues were high enough to support those payments and now they're apparently notsomuch. Interestingly, bookings at the St. Regis dropped by 20% in the months following the AIG episode, potentially attributed to the media frenzy surrounding the widely-publicized controversial retreat — which has been dubbed the "AIG curse."

The fate of the resort is complicated and the nitty gritty deets may only interest hotel investment geeks, but it seems like the resort is going to stay open (at least for the time being) and the whole ordeal shouldn't affect guests. Rates are hovering around $345 to $375 right now, and though the LAT even mentions the hotel's financial woes don't seem to be impacting peoples' stays, a couple of recent TripAdvisor reviews complained of poor service. One said the "pool area bar/service was an unorganized/understaffed mess" and another complained that the experience was "a good stay mired by some poor service" — though these could be plain ol' day-to-day kinks.

See also more detailed LA Times article on this: "St. Regis resort in Dana Point faces foreclosure sale"

Another report from two sources on Maui. The perennially strong and high-end Four Seasons Maui has been running at 60% occupancy, low for them, employees there are on furloughs and getting a few days a week of work.