Two Major Scottsdale Resorts Facing Foreclosure

by Deidre Woollard (RSS feed)
Feb 12th 2009 at 11:02PM

What is going on in Scottsdale, Arizona? The popular warm weather destination has had its second announcement of a major resort facing foreclosure in just a few weeks. The 293-room InterContinental Montelucia Resort & Spa, which just opened last fall headed toward foreclosure and scheduled for disposition on April 28. It follows the W Scottsdale which was hit with a foreclosure notice a few weeks ago.

The owners of the Montelucia are, according to GlobeSt.com having troubles with a $185 million mortgage held by Eurohypo AG of Germany. The article quotes a local analyst who says that Phoenix is leading the nation in a drop in hotel occupancy rates. There is concern that other new projects which were also conceived during the boom time of 2006 could now be vulnerable. Some of these projects have loans coming due this year and next year and may have trouble finding refinancing. Both the W Scottsdale and the Montelucia are still open for business.

Tags: arizona, montelucia, w hotel, WHotel

Filed under: Real Estate Developments

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Reader Comments (Page 1 of 3)

BHarrison Feb 13th 2009 2:14PM

Evenually, these "white elephants" of completed upsacle properties will become owned by someone at bargain basement prices . . . it will be the original investors who lose out on these projects; but such is the way of capitalism. Once the buildings have been constructed, they don't fade away unless someone leaves them in massive disrepair.

Unlike in the previous boom times, I don't think that in the near future anyone is going to demolish the buildings for the property . . . I think it will be a long time before we see that again.

duparty2night Feb 13th 2009 3:38PM

I stayed at this resort and I find it rather amusing that everybody is using their failure on the economy. Don't get me wrong I do understand there is a slump. But I also stayed at this place and it was no resort with the exception of looks. It was a bore all around in fact at night all you could here was crickets.

Jim Lonstaf Feb 13th 2009 4:43PM

these resorts are OK, but despite their names behind them, the Scottsdale Princess and even the Hyatt Gainey Ranch are nicer properties overall.

Michael Feb 13th 2009 6:51PM

So - let the investors take the hit. Putting money into high ticket resorts is a risk; and if times are tough, we
all suffer. It's happened before: the former Playboy resort in NJ is a vacant wreck; two A.C. casinos are in real trouble; why should Scottsdale be any different ?

tess Feb 13th 2009 6:21PM

ahhhh, not to worry resorts...just ask obama for some money, he'll give it to you.......

Randall Feb 18th 2009 2:09AM

Yeah, you mean just like Bush did before the end of his last term.

teltech54 Feb 13th 2009 6:54PM

You know who is going to own these properties? The Arabs. They are taking our oil dollars and buying up America. If the can't fight us in the streets then they will evict us.

Bill Feb 13th 2009 7:51PM

Bush 1 and 2 were in bed with the Saudis. I am not worried about Arabs in the streets of the U.S. I am worried about the almost 500 billionaires in the United States who squander the money when the bulk of Americans are hurting from corruption at the highest level of government----when Bush was in office and before. Obama is trying to clean it up and make people accountable. It might be a thankless job, but I appreciate his honor in attempting it. Wall Street has been deregulated since Reagan big-time. Reagan was the worst President in modern history because he gave all the tax breaks and deregulation to the richest. Now the Republicans are fighting the accountability of such actions, so you have a society with two few getting the pie on one side, while two many are not getting jobs or making money on the other side. We are a mess going either way. The difference between the Depression of the Thirties and now is that we came out of the thirties and began to lead the world in export production. Now we are weak. We most likely will eventually see all money and assets liquidated to provide a total restructure of our country, but with someone like China running us and then hiring us, because they are capable of managing a company. We are losing those capabilities, and when you lose, you end up working for someone else. Right? Do not worry about Arabs; they own Citibank, but they will never own bulk of U.S. China on the other hand?

Detroit Bekaert Feb 13th 2009 7:28PM

They should call all of the big shot Republicans that never stopped to think that their rich friends (Banks and Mortgage Companies) could give loans to losers and give them a AAA Rating to get the loans

The stupid Republicans are still fighting the bail out now which they were the ones that started it back in Dec. while they were still in power. If the Republican Party continues to act like they now are, their will not be a Republican Party after the next election.

That Party needs NEW LEADERS and they need them NOW!! Get rid of the older dummies in the Party that are the so called Leaders and get some new blood and do it as fast as you can or the next election will be a blown out for the Democrats

Detroit Bekaert

Cliff Feb 16th 2009 11:37PM

Spoken like a true communist

Sue Feb 17th 2009 1:54AM

Agree with your comments. New blood is needed, and Bill you've been drinking too much Democatic kool aid. We're turing into a socialist state and alot and people who voted for BO think he's going to pay their rent and bills for them. This is the mentallity of America's voters. I think I will move to an island somewhere where values and earning you money through hard work matters.

Dave Feb 17th 2009 1:52PM

Why don't you educate yourself before spewing such trash! This economic problem started during Jimmy Carters watch. It was compounded by slick willie when he demanded that the banks give subprime loans to people who could not afford them! The republicans tried to stop fanny may, and freddie mack in 2004!

curly Feb 13th 2009 7:40PM

Hey Detriot Bekaert

You are a f****** idiot! Learn how to spell!

Dan E De' Winter Feb 13th 2009 7:43PM

Duchess of Deveonshire-while I heap spoonfulls of your cream into my coffee or onto a favorite fruit, it saddens me to see your loverly cap has been struck by a chicken-poor dahling.
Sharper Image-glad to see them among those listed - overpriced plastic guy toys with fab casing design but only semi-well performing, and as for you Ion remover fans, as I proudly informed everyone, they were fakes. Two of mine still work, but never a single Ion did they take-err, umm, what's an Ion? ;-)

Panapada Feb 13th 2009 8:32PM

I stopped going to Snobsdale when they installed photo radar cameras on Loop 101. It was ok on Snobsdale city streets but not on a State highway. Also, the Mulsims have taken over Old Town Snobsdale; I may have to buy gas from the Mulsims, but damn if I will buy anything else from them.

dave Feb 13th 2009 9:28PM

bill you ignorant slut...i'll check back in 4 and 8 years and see if you and your kind are still blaming bush and reagan for all of the nation's troubles...guess you've never read anything about who it was that created CRA (bet you don't even know what it stands for), FANNIEMAE or FREDDIEMAC...barney and nancy and dodd will keep their coffers full and their private jets flying...and i know THEY will keep blaming bush until the cows come home...too bad at least 5% of your kind turn off CNN and do some research of their own..oh well...spittin into the wind..drink your koolaid and watch for your welfare check

Susan Feb 17th 2009 1:59AM

Bravo, Dave, Bravo!!!!!

Kris Feb 17th 2009 8:34AM

Dave- Don't be so fast to call people ignorant, for tis you, my friend, that doesn't understand why the banks failed. It is not CRA (Community Reinvestment Act) which caused it. That program has operated successfullly for over 30 years. Sure, some of those borrowers have had financial difficulties, who isn't these days? The bulk of the bad loans were generated by the Wall Street Bankers and mortgage brokers- not by FNMA or FHLMC. These agencies were only the place where the Republican controlled Congress dumped the loans after Wall Street realized its mistakes. THe bad loans? Sub-Prime, Alt-A, Option ARMS, etc. Not originated for CRA or by FNMA or FHLMC. That's why CRA loans perform as well, and often better, than other loans.

the vegas style guy Feb 14th 2009 1:44AM

I am shocked! Shocked I tell you that the Bush apologists are here ,well, apologizing for Bush, et al..

May I remind you bunch of your rallying cry to us Dems (and patriotic Americans, tee hee) when you stole the election in 2000 (right before your guy slept up until 9/11, yeah, I went there).....GET OVER IT, YOU LOST!

Len Feb 16th 2009 8:33PM

Here in Pardise Florida Keys we have lost one of our most famous resorts recently to a fire on New Tears Eve of all times. Right in the middle of a wedding. This is where all the famous people stayed for years including George Bush Sr and Kurt Goudy amoung others. Also recently Holiday Isle's new owners have defaulted on there loan of 70 million and haven't made a payment in several months. With the buying up of these places down here and trying to make them in luxuary Codos didn't work it all feel apart for the investors. Now the loan companies are holding the bag and the local Govt. is going to go down also with out the needed revnue to keep them spending like druken sailors. Sound like real govt. With the loss of jobs and up scale places for the Snow Birds to stay here in Americas only Pardise what is next. The fishing is great but no anglers great for the locals to catch and have a nice dinner but need the money for fuel to run the boats and pay the dockage. Just another Uppie greed thing that went bad here in America, but Obama is here for the rescue...

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