BETHESDA, MD-The lender of a $140-million mortgage for the HyattRegency Bethesda postponed the auction of the property on Friday inthe hopes of coming to an agreement over a workout with the formerowner, the Meridian Group, accordingto the Washington Post.

The postponement bodes well for the lender at least, which stoodto take a bath on the auction even if the best-case scenariomaterialized. In short, the numbers behind this loanillustrate a deal that closed at a price point that the market willsimply not support today. One close comp to the Hyatt RegencyBethesda is the nearby Doubletree, which traded at roughly $265,000per key several months ago. Even if the Hyatt Regency Bethesdacould fetch $300,000 per key at the auction, it would still come inunder the note of $140 million.

On the other hand, suggests Tom Baker, principal of HumboldtHospitality Advisors, “if the existing borrower can show thelenders a plan in which, let’s say, 10 years from now they will gettheir $140 million back then the lender doesn’t have to take aloss.” Baker speculates that the lender is confident, or at leasthopeful, of reaching an agreement with the borrowers. “And if theydon’t, of course, they can always start the auction process again,”he tells GlobeSt.com.