St. Regis Monarch Beach Turned Over To Citigroup

by Deidre Woollard (RSS feed)
Jul 21st 2009 at 12:01AM

Last month I mentioned that the owners of the St. Regis Monarch Beach in Dana Point, California had defaulted on a $70-million loan. The Orange County resort, infamous for being the site of the $443,000 AIG retreat after the federal bailout, was scheduled for a foreclosure auction. The auction didn't take place and the resort was officially turned over to the lender of its $70 million mezzanine loan, Citigroup. The Wall Street Journal reports that deal took place after weeks of negotiations between Citigroup and the owners of the hotel, Farallon Capital Management LLC and Makar Properties LLC. A Citigroup spokesperson has said that the foreclosure acquisition will have no impact on the daily operations of the resort which will carry on as usual.

The St. Regis has a 400-room hotel, a golf course, a private beach club and several restaurants including Michael Mina's Stonehill Tavern. The property is current on two other mortgages totaling $230 million and was refinanced in 2007 resulting in the $300 million in debt. The five-star hotel is located near Laguna Beach, California which is also home to Ritz-Carlton and Montage luxury resorts. Occupancy rates were down in the first quarter of the year but if this weekend's traffic in the area was any indication, those numbers should be on the rise once again.

Tags: dana point, DanaPoint, laguna beach, LagunaBeach, st regis monarch beach, StRegisMonarchBeach

Filed under: Luxury Travel & Hotels

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Reader Comments (Page 1 of 3)

e denton Jul 21st 2009 4:59PM

so what! As if the rich care about us! Let em sink!

tinkertoy Jul 21st 2009 5:20PM

The rich don't owe you anything....and I'm not rich

Richard Jul 21st 2009 3:49PM

Just one of many to come.

local830 Jul 21st 2009 4:00PM

This is sad and tragic new? Well maybe for the hired help. I am sure ownership won't be missing their mint julip by the pool!

Boxer Jul 21st 2009 4:25PM

How is this sad and tragic news?

kluj Jul 21st 2009 4:27PM

Teeehehehehehehehehhehe. i find it hillarious!!

steve Jul 21st 2009 4:53PM

The people here who find this funny or a portent of the end of the world should be ashamed of them selves. We seem to live in a completely different world than existed after WWII. Then an attitude of unending success is our because we live in the United States. More wealth was created, more good was done, more comfort products and products to serve man were created between the end of WWII and about 2000 than any other time in the history of the world. Today anything that looks like success or a reward for one's efforts gets the kind of response like Mr. Tehehehehehehe or poor richard above. Shame on you both.

B Jul 21st 2009 5:49PM

Thje writers who find this funny, must be part of this selfish new genteration.
They can't communicate, and they think of anyone but themselves, and in most cases voted for Obama so they could get free bees. What they don't understand, if the hotel has problems, its the line people, the hourly who do work hard for a days salary will be hit. We want success in this country, and the cowards that find this funny, well, maybe they should go out and get a job, and then find out what it is like to loose a job, do to the economy. Then then won't be laughing.
Then who will they blame. We use to be a proud country that helped each other.
Where did pride, honesty, and a sense of humanity go. Obviously out the door with people who laugh at hard times. Why don't you go crawl back under a rock, and come out again when you have something nice and supportive to say.

Reisler7 Jul 21st 2009 7:12PM

way 2 go STEVE

earsstinks Jul 21st 2009 5:01PM

YES HE CAN ! and did .All you obamasses should be out of work

mark Jul 22nd 2009 5:11AM

those comments have nothing to do with obama, they only have to do with the condition of this country and the way it was left by the former inhabitants of the white house. There is a sense of mean spirtedness like weve never seen before. Too many Rush like persons, when you have the likes of Hanity spouting off about every fricking thing and tearing everything down what else do you expect. I bet most of the people who commnted on this consider themselves republicans and good patriots, I say America is f...ked up and you are the reason

earsstinks Jul 22nd 2009 11:02AM

QUIT IT BEATING A DEAD HORSE---FYI BUSH AINT PRESIDENT BUSH DIDNT PUT US IN THUS SITUATION YOUR BOY DID.TRY LOOKING AT THE POLLS AND GET OFF THE FENCE !

steve Jul 21st 2009 5:06PM

Actually, I short changed the other 2 commentors before mine. All 4 comments are juvenile, selfish, jealous, and indicative of small self absorbed minds. Again; shame on you all.

Butch Jul 21st 2009 5:24PM

I fail to find humor in the misfortune of others. The lower income classes as usual will bear the brunt of the business failings through unemployment and taxes. WW2 helped pull the US economy out of the depression of 1929 and it was not until 1947 (18 years of hardship) that the light at the end of the economic tunnel became visible-BUT at what cost? Millions dead, and a cold war soon to bring more. At this point in our history if we do not use the past as a learning tool and control big business, eliminate the Walmarts, oligopolies, stop bailing out auto companies and bring back the Mom & Pop retail entrepanuers this country will fail. As a republican I am beiginning to doubt the 2 party system, and the financial structure of Wall St.

therlallen Jul 21st 2009 10:41PM

And Butch, I doubt the accuracy of your statement. How one can get from the first part of your statement to the last part is a mystery to me. Maybe you could look at the huge increase of the people that now pay no taqxes and in many cases have no job and contribute nothing but take much, or the millions of babies born out of wedlock with no father and no future, only to be cared for by society, or maybe look at the total moral decay of this society. No Butch, don't blame big business or Walmart--blame those in this society that gave us all of this- we call them politicians and by and large Democrat politicians who gave us welfare, abortion, gay marriage, and on and on. How do we save it? Item number one is to get rid or Obama and the Democratic controlled Congress. Did the Republicans do a good job--no, but they didn't hold a candle to what is happening now.

Fred Jul 21st 2009 5:32PM

It's simple. There are just too many houses, resorts and business properties. It's supply and demand. When enough of them fail, we'll settle back in to a more realistic and balanced world. We just went waaay beyond reality. How far? Who knows? Maybe 25-35% in everything. Somethings have to give.

Until we become a producing and not consuming economy again (and government is now the biggest consumer), it will go on with demand slowly declining and supply slowly declining with it. That's how our living standard went up and that's how will come down. Out of laziness, we came to think that wealth was created by consumption and not production. It was a fun ride.

haole boy Jul 22nd 2009 12:50AM

Places like the St. Regis are very large contributors to the tax base, local employment and the national economy as a whole. Those that have an attitude that it is "us against them" or " the rich against the poor" are diluted in their lack of knowledge of economics. When business fails America fails and the reprecussions are felt by all economic levels. Even those that don't contribute will find it harder to get welfare and eek out an existence.