Richard Verstegan 5 a.m., March 12
Posh W Hotel to Default, Go Back to Lenders
The super-upscale, 258-room W Hotel at 421 B St. will go into default this month and go back to its lenders, Sunstone Hotel Investors, a San Clemente-based hotel real estate investment trust, said today (June 7). Sunstone said the hotel has been hurt by "significant and continuing deterioration in demand for luxury lodging." The nearby 1,190 convention center hotel has hurt W, along with the opening of luxury boutique hotels and two Starwood-branded hotels. Sunstone purchased the hotel for $96 million in 2006. It has a $65 million mortgage and $250,000 debt per room, according to the Associated Press. The hotel is now worth less than what Sunstone owes on it, says the REIT.