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| By Andrew Gomes, The Honolulu
AdvertiserMcClatchy-Tribune Regional News August 18, 2009 - Local developer Brian Anderson failed to block a foreclosure auction of The Lotus at Diamond Head hotel in Waikiki (2885 Kalakaua Avenue) today after a drawn-out legal battle was extinguished in U.S. Bankruptcy Court. The 51-room boutique hotel formerly known as the W Honolulu-Diamond Head was sold to Unity House, a local nonprofit labor welfare organization, for $8.5 million. Unity House outbid First Hawaiian Bank and Central Pacific Bank, which had loaned Anderson money secured by the hotel. The purchase by Unity House is subject to confirmation by a Circuit Court judge at a hearing expected in about 30 to 40 days, at which time anyone willing to bid at least 5 percent more could reopen the bidding for the property. In the meantime, the hotel managed by Castle Resorts & Hotels, is continuing normal operations. Anderson, who bought the hotel on a mix of fee-simple and leasehold land for $8 million five years ago, had tried to save the Lotus from auction by filing for bankruptcy in May with the intention to hire a broker aiming to sell the property for $14 million. Reach Andrew Gomes at [email protected]. ----- To see more of The Honolulu Advertiser or to subscribe to the newspaper, go to http://www.honoluluadvertiser.com. Copyright (c) 2009, The Honolulu Advertiser Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |
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