Two Major Scottsdale Resorts Facing Foreclosure
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.