St. Regis Monarch Beach, the hotel made famous by the notorious luxury retreat held by
American International Group
merely days after the company received a federal bailout, has been seized by
Citigroup took over the 400-room Dana Point, Cali. hotel and golf course after it failed to repay a $70 million loan that was in default.
St. Regis, a unit of
Starwood Hotels & Resorts Worldwide
, will continue to manage the resort and business will go on as usual, according to a statement released by the company.
Starwood Hotels is set to report its second-quarter earnings results on Thursday -- and it doesn't look pretty. The company has had to contend with the swine-flu outbreak, which kept travelers home and forced Starwood to waive penalties for canceling or changing reservations at its Mexico locations.
Analysts expect the company to earn 17 cents a share on revenue of $1.19 billion. Last year, Starwood earned 56 cents on $1.57 billion in revenue.
St. Regis is the latest casualty in the luxury hotel market. Earlier this month Starwood said it is selling its W San Francisco hotel to an investment company for $90 million.
, which partners with Marriott, Ritz-Carlton and Four Seasons, among others, annouced today that it
in its second quarter and cut its full-year outlook, not expecting occupancy levels or room rates to level anytime soon.
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