The judge finds the occupancy projection unrealistic since theaverage occupancy among Orlando's 110,000 hotel and motel rooms inOctober, the last audited month, is 68%, according to Smith TravelResearch of Hendersonville, TN. Sandy Lake Towers No. 1, completedin October 1999, is at 15% occupancy, up from 11.5% occupancy inOctober.

The court is not only denying the loan deal Naya's Orlando firm,Sandy Lake Properties, wants to make with Dallas-based CypressLending Group Ltd., but may order the 17-story, 204-unit Tower No.1 be shut down permanently and the property sold at auction. JudgeJennemann will make that decision at a Dec. 20 hearing.

Sand Lake Towers Inc. filed for Chapter 11 protection under theU.S. Bankruptcy Code in August of this year, listing assets of$19,000 and liabilities of $20 million. The developer says theventure is losing $100,000 a month. The second tower has been underconstruction since 1991.