Foreclosure Puts Embassy Suites on Market

LA QUINTA, CA-The newly built 146-room Embassy Suites La Quinta Hotel & Spa at 50-777 Santa Rosa Plaza has hit the market in a foreclosure sale, a rare occurrence in today’s strong California hotel market. “This is the first institutional quality REO hotel that we have seen for at least the last five years,” says Alan X. Reay, president of Irvine-based Atlas Hospitality Group, which is marketing the property on behalf of the LLC that foreclosed on it.

Reay tells GlobeSt.com that a few small hotels throughout California have gone into foreclosure in recent years, but this is the first of such size and institutional quality to go into foreclosure in years. He says that the foreclosure, by an affiliate of Chicago Title called Village Resorts LLC, resulted from cost overruns on the part of the developer.

The developer spent $72-million building the property, which opened in November 2006, and nearby casitas that were sold to individual owners. In addition to its 146 suites, the hotel generates lease income from three retail parcel pads and 122 privately owned condominium units that were designed to Embassy Suites standards. Its nine-acre site includes 10,000 sf of meeting space and the 6,000-sf Spa Hibiscus.