Hollywood hotel buyer struggles to get financing

The sale of a large Hollywood hotel is being delayed in a battle for financing in the suffering market. New York-based investor Joseph Chetrit has been in contract to buy the Westin Diplomat for $595 million since last summer. Since then, the market has declined, and now the hotel is valued by lenders at only $400 million. In addition to this, Chetrit’s lenders are hesitant to finance the hotel because it has underperformed, reaching rates of only $600 per night during peak times as opposed to the projected $750.