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The upscale Sè San
Diego, mired in bankruptcy for nearly a year, has been sold for
$49 million to Kimpton Hotels, a
well-known operator of boutique properties throughout the U.S.
Proceeds from the sale, approved in U.S. Bankruptcy Court this week, will
fall far short of what is owed not only to the original lender but also
to a number of creditors, including the construction company and
sub-contractors who worked on the $150 million project.
The debt owed by the owner, 5th Avenue Partners, was estimated to
be between $50 million and $100 million when it filed for bankruptcy in
June of last year. At the time, the company owed its German-based
lender, WestLB, about $73
million.
When the hotel sale went to auction earlier this week,
there were no other prospective buyers who outbid Kimpton, which also
operates the Hotel Solamar in downtown
San Diego.
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The Se hotel, along with the House of Blues, has been
sold to Kimpton Hotels for $49 million.
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