Istithmar PJSC, the Dubai-based investment company, may lose control of the W New York Union Square hotel in Manhattan at a foreclosure auction next month by holders of the mezzanine debt on the property.
The Istithmar Hotels Union Square Mezz 2 LLC will be sold to the highest bidder on Dec. 8 in New York at the offices of Allen & Overy LLP, according to newspaper advertisements by the law firm.
Luxury hotels have been hurt by a decline in business and leisure travel during the recession. Room rates at the W New York Union Square, named by Conde Nast Traveler as one of the world’s top 500 hotels in 2005, are down by almost $100 a night, according to a report last month from credit-rating company Realpoint LLC.
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