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The Infamous Watergate Hotel to Be Auctioned Next Week

Where: 2650 Virginia Ave Nw [map], Washington, DC, United States, 20037

Uh oh. There’s trouble at the Watergate Hotel. Again. DC’s most famous hotel will be auctioned Tuesday, reports the Washington Post.

Ever since the landmark closed to undergo a dramatic renovation, news from the hotel has been pretty light — er, at least because we haven’t been willing to tiptoe around the place with flashlights. Back in 2007, word was that the place would start accepting guests in late 2009. But last month the hotel received a notice of foreclosure after owning company Monument Realty defaulted on its loan. The Post reports that the notice lists an outstanding $40 million balance on the loan. Whoops?

Monument fell victim to terrible timing, it seems: Fallen giant Lehman Brothers was a partner and equity investor in the property. The developer was tied up in a legal battle with neighbors over its “initial plans to turn the hotel into luxury co-ops,” explains the Post. And, well, this economy sucks, as you may have noticed.

Watergate devotees — and residents — hope the auction will mean a new owner might “revive plans to restore the hotel.” The winning bidder will have to place $1 million on the property. We’ll keep you posted on what we hear.