Reay tells GlobeSt.com that a few small hotels throughoutCalifornia have gone into foreclosure in recent years, but this isthe first of such size and institutional quality to go intoforeclosure in years. He says that the foreclosure, by an affiliateof Chicago Title called Village Resorts LLC, resulted from costoverruns on the part of the developer.

The developer spent $72-million building the property, whichopened in November 2006, and nearby casitas that were sold toindividual owners. In addition to its 146 suites, the hotelgenerates lease income from three retail parcel pads and 122privately owned condominium units that were designed to EmbassySuites standards. Its nine-acre site includes 10,000 sf of meetingspace and the 6,000-sf Spa Hibiscus.

Reay tells GlobeSt.com that the property has already generatedstrong interest from prospective buyers, including locally basedhotel groups, owners of other Embassy Suites hotels and a number ofREITs. He says that prospective owners are interested in theEmbassy Suites flag as well as the location near Highway 111 andInterstate 10, which is close to venues like the Indian WellsTennis Garden, Empire Polo Fields and the PGA West golf course.