monarch beach

St. Regis Monarch Beach Headed For Foreclosure Auction

Another luxury hotel is in financial trouble and facing foreclosure. The Los Angeles Times is reporting that the owners of the St. Regis Monarch Beach in Dana Point, California have defaulted on a $70-million loan. The Orange County resort became infamous last year for being the site of the $443,000 AIG retreat after the federal bailout.

The companies that own the resort are in default and the hotel has been scheduled for a foreclosure auction. Ongoing negotiations may prevent the auction but unless a deal is worked out the auction will take place on July 7. 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. The property was refinanced in 2007 amassing $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.

The hotel is part of the Starwood Group, a company which has seen several of its W Hotels also flirt with foreclosure. Like those hotels, the St. Regis Monarch Beach remains open. It has a Father's Day brunch planned as well as barbecue events for the Fourth of July and packages to coordinate with Laguna Beach's popular Pageant of the Masters which runs from July 8 to August 31. The art event showcases "living pictures" - re-creations of classical and contemporary works of art with real people posing to look exactly like their counterparts in the original pieces. That show and several other art festivals, brings tourists to the beach town all summer long and usually keep local resorts full of guests.

Gallery: Hotels In Transition