Lodging investor and operator Stephen Siegel, who has made a specialty in recent year of buying distressed properties, now has some of his own.
Bank of America sued Siegel in Clark County District Court to install a receiver at three of his eponymous suite hotels after declaring a default on $21.3 million of loans.
All three locations, the Sahara, Craig and St. Louis, identified by the streets they are on or near, had nearly identical loan terms and followed the same time line of loans being made in August 2007, going into default last October and November with foreclosure proceedings initiated on Monday .
Siegel Group executives could not be reached for comment. The company's website lists 16 suite properties, all but two in Las Vegas, that promote weekly and monthly rates.
Bank of America, in its case filed late Tuesday, cited the following circumstances:
■ The Sahara, with 121 units, had an original loan of $8 million. After making four years of interest-only payments at $43,000 a month, the amount was increased in October to $50,300 principal and interest. The bank put the overdue balance at $170,000.
■ The Craig, with 125 units, had an original loan of $6 million. After four years of interest-only payments at $32,250 a month, the amount rose to $37,700 principal and interest. The overdue balance is now $127,600.
■ The St. Louis, with 92 units, had an original loan of $7.25 million. After four years at $39,000 a month interest-only, the payments rose to $45,600 principal and interest. The amount owed now stands at $205,100.
The privately held Siegel Group has bought and renovated several down-at-the-heels hotels, such as the Artisan and the Gold Spike. In December, the company added to the list by acquiring the now-closed Atrium Suites Hotel.
Contact reporter Tim O'Reiley at firstname.lastname@example.org or 702-387-5290.