LAKE TAHOE, NEVADA Bank of America has scheduled an auction of its Ritz-Carlton Lake Tahoe.
The 171-key luxury resort will be auctioned on the steps of the courthouse in Roseville, California, on June 27. Bank of America, a primary lender on the development, has not set a minimum bid for the 2-year-old property, Sacramento Business Journal reports.
The previous owner, Highlands Hotel Co. LLC, defaulted on two loans totaling US$157 million in March 2010 after missing US$18.6 million in payments. The resort cost approximately US$300 million to build, and it opened in December 2009.
The resort was developed by a partnership of Crescent Real Estate Equities Co. and East West Partners. The hotel is part of a development called Highlands, built at the base of the ski slopes at Northstar-at-Tahoe.
The resort remains under a long-term management agreement with The Ritz-Carlton Hotel Co., which will transfer as part of the auction.