The St. Regis Monarch Beach Resort in Dana Point, CA,— which made headlines this past winter when AIG spent $440,000 on a retreat there for its top producers after an $85 million bailout loan— has been foreclosed and acquired by Citigroup after the owners, Makarechian and Farallon Capital Management LLC, were in default on a $70 million loan from a real estate unit of Citigroup. Citigroup planned to sell the resort at an auction last month but no bidders stepped up, causing the bank and the owners to allow Citigroup to take ownership.
Starwood Hotels & Resorts Worldwide, Inc.'s St. Regis brand will continue to operate the property. The 400-room hotel is California?'s only five-star, five-diamond resort.
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Citigroup released a statement on the ownership transition, affirming that the acquisition will not impact the hotel, golf club or beach club.? Citigroup and St. Regis are communicating to the community, associates, guests and meeting planners that the change in ownership will not impact hotel operations.
"?We remain committed to providing our guests with a flawless experience at every turn, and we are proud, that despite the challenging economic times, the St. Regis Monarch Beach continues to gain market share and is outperforming its competitive set.," said Johnny So, general manager of the property.
Visit www.stregis.com.