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St. Regis Monarch Beach is Citigroup's Problem Now

Where: 1 Monarch Beach Resort [map], Dana Point, CA, United States, 92629

As we reported in June, the St. Regis Monarch Beach — also known as that hotel where AIG execs blew 500K on a corporate retreat just after the group got a federal bailout — was facing foreclosure — and now its owners have turned it over to its mezzanine lender, Citigroup.

According to the WSJ, the resort missed payments in April on a $70 million mezzanine loan from Citigroup. Naturally, the Starwood talking heads had this to say about the transition between its current owner and Citigroup:

"The acquisition (through foreclosure) will have no impact on the hotel, golf club or beach club," Citigroup spokeswoman Danielle Romero-Apsilos said. The resort will "continue operate at the highest standards of service, seamlessly and without interruption for guests and employees."

Yeah, yeah. We know; it usually doesn't affect you. Unfortunately, it doesn't affect rates either: they're still hovering around $545.