Luxury downtown hotel faces economic music [Southern California]
Just 1½ years after opening one of downtown San Diego’s glitziest hotels in the midst a deep recession, the owner of the 184-room Sè San Diego has been notified that it is in default on its construction loan, owing the lender nearly $73 million.
Although the original mortgage of $67.8 million came due a year ago, the German lender, WestLB, waited until late March to officially file a notice of default on the 23-story luxury property at 1047 5th Avenue.
The hotel’s financial difficulties are emblematic of the tough economic times faced by the hospitality industry, especially upscale hotels and resorts that have seen sharp declines in once-free-spending business and leisure travelers.
Both the lender and operator of the hotel declined to comment, although a written statement from the hotel ownership stressed that no foreclosure sale has been set.