Filed under: Luxury Travel & Hotels
The Sè San Diego has become the latest luxury hotel to file Chapter 11. The San Diego Union-Tribune reports that 5th Avenue Partners, the owners and operators of the 184-room boutique hotel, filed Chapter 11 to prevent the main lender WestLB AG Bank from appointing a receiver to take over. As of last month, Fifth Avenue Partners owed around $73 million. The hotel's construction loan came due in May 2009 just five months after it opened in late 2008. In 2008 we covered the opening of the hotel and the creation of the West Coast's largest hotel penthouse, a three-floor spread going for $20,000 a night.
It also has 22 unsold condos, the Se Residences, that sit atop the hotel. The hotel has struggled to find its place in San Diego's tourist market but does have a thriving nightclub, Siren, a rooftop pool bar & lounge that is popular with both locals and vacationers. The hotel has received good reviews and was on Condé Nast Traveler's 2009 Hot List. The Union-Tribune reports that in the filing Fifth Avenue said it would make almost $4.7 million over the next 13 weeks with total expenses of around $4.4 million. There are signs that a turnaround in both the hotel-condo and luxury travel markets is coming but the question is whether or not the property can manage its finances well enough to hold on until then.
The hotel remains open for business and is offering a Summer Lovin' package that includes accommodation, a summer facial in Sè Spa, Sè Spa Pedicure featuring OPI Summer Collection Polish, daily breakfast for two ($50 daily credit) and valet parking starting at $429 plus tax.