Lender Scopes Deal on Hyatt Regency Note

BETHESDA, MD-The lender of a $140-million mortgage for the Hyatt Regency Bethesda postponed the auction of the property on Friday in the hopes of coming to an agreement over a workout with the former owner, the Meridian Group, according to the Washington Post.

The postponement bodes well for the lender at least, which stood to take a bath on the auction even if the best-case scenario materialized. In short, the numbers behind this loan illustrate a deal that closed at a price point that the market will simply not support today. One close comp to the Hyatt Regency Bethesda is the nearby Doubletree, which traded at roughly $265,000 per key several months ago. Even if the Hyatt Regency Bethesda could fetch $300,000 per key at the auction, it would still come in under the note of $140 million.