WASHINGTON (July 20) - One of Washington's most famous landmarks will be on the auction block Tuesday. The Watergate Hotel, part of the Watergate complex made famous by the scandal that brought down President Richard M. Nixon, has remained empty since it closed in 2007 for multi-million-dollar renovations.
A 30-day foreclosure notice expired Thursday and hotel owner Monument Realty defaulted on its $40 million loan. The hotel has been neglected for years and needs $100 million in repairs, developers told The Washington Post.
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The Watergate complex was built in 1967 in northwest Washington, D.C.
The Watergate complex was made famous by the 1972 burglary that led to Nixon's resignation. The Watergate burglars slept in the hotel before breaking into the Democratic National Commitee headquarters located at the Watergate offices.
Officials with Monument Realty said two weeks ago they hoped the lender could agree to new terms, but talks apparently fell through. The company bought the Watergate for $45 million in 2004. It closed the complex in 2007 to prepare it for its conversion to a luxury hotel, but has not paid the hotel's property taxes since last year.
Now, several big-time developers are interested, including a luxury hotel chain from the Middle East and a hotel company from London, Alex Coopers Auctioneers told the Post. Opening bids will start at $1 million.
According to the Post, even if someone were to grab the building for a mere $20 million or $30 million, they would would need an additional $100 million in financing to renovate it.
"That doesn't sound to me like a bargain," an investment broker told the newspaper. "Hotel development financing is impossible."
