It looks like the W Hotel in my backyard is in a bit of financial trouble. Its owner, Sunstone Hotel Investors, Inc., has announced that it will default on its June mortgage payment since it no longer makes financial sense for it to continue servicing the debt. The investment firm bought the hotel for $96 million back in 2006 and has seen the property value decline below the mortgage amount of approximately $250,000 per room. Sunstone blames the crappy economy and travel downturn for the mess but as someone who's actually stayed at the hotel, I suggest that it's the closet-sized room and out-of-the-way location have something to do with it's decline.
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