The Hyatt House hotel in Los Angeles is headed to a foreclosure auction, according to a notice of trustee’s sale, after the borrower defaulted on millions of dollars of debt.
The Mayer Corporation, which developed the five-story, 200-key hotel on the University of Southern California’s health sciences campus, a couple minutes walk from its medical center, landed a $61.5 million refinancing loan from Westbrook Partners four years ago.
Entities connected to the Mayer Corporation and Westbrook Partners were in the midst of a civil case over the hotel in late July and early last month. Westbrook Partners requested a receiver be appointed to take possession of the property because the “borrower is in default under the loan and does not wish to continue operating the hotel,” court documents read. The hotel isn’t making enough money to pay delinquencies and ongoing expenses to keep the business afloat, the receiver application claims. But the plaintiff requested a dismissal and the court vacated earlier orders days before the notice of trustee’s sale. The case is now closed.
The Mayer Corporation and Westbrook Partners did not immediately respond to a request for comment.
The hotel, which opened in December 2020 at 2200 East Trojan Way, has 14,000 square feet of ground-floor retail and restaurant space and an 18,000 square foot conference center leased to the university.
Los Angeles hoteliers are seeing costs increase in a challenging economic and regulatory environment, while revenues flatline because tourism hasn’t totally recovered since the pandemic. Issues were compounded by the wildfires and recent immigration protests.
Beyond Los Angeles, a Bay Area Hyatt House hotel was purchased through a deed in lieu of foreclosure for an undisclosed amount less than two months ago.
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