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Bankrupt Sè San Diego Hotel Along with The House of Blues Sells for $49 million
to Kimpton Hotels, Far Short of Amount Owed to Lender and Creditors


By Lori Weisberg, The San Diego Union-Tribune
May 27, 2011

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.



The Se hotel, along with the House of Blues, has been
sold to Kimpton Hotels for $49 million.


For the rest of the story please visit:

http://www.signonsandiego.com/news/2011/may/26/downtown-hotel-in-bankruptcy-sells-for-49-milli/


Contact:

Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA  92102
619-293-2251
lori.weisberg@uniontrib.com


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