by Calculated Risk on 6/07/2009 06:23:00 PM

"At some point, you just stop the bleeding and hand the keys back."
John Arabia, an analyst with real estate research company Green Street Advisors

From the WSJ: Sunstone Hotel Investors to Turn Over W San Diego to Mortgage Holders

Sunstone Hotel Investors Inc. intends to forfeit the 258-room W San Diego to its lenders after its efforts to reach a compromise on the luxury hotel's $65 million securitized mortgage failed.

Sunstone ... bought the W for $96 million in 2006 ... Sunstone estimates the W San Diego is worth much less than the $65 million balance on its mortgage. At the end of last year, the hotel posted an occupancy of 69% and generated revenue per available room of nearly $153.

Much less than $65 million? That means the price has probably fallen 50% or more since 2006.