Citigroup (C) To Sell St. Regis Resort

According to the Wall Street Journal, Citigroup (NYSE: C) has a letter of intent to sell the 400-room St. Regis Monarch Beach in Dana Point, California, to an unidentified foreign investor for approximately $250 million. The deal includes the buyer assuming the property’s $230 million mortgage and paying Citigroup $20 million. The amount paid is much less than what Citi lent.

St. Regis came into trouble last September when media and politicians focused on plans by AIG (NYSE: AIG) to host a $440,000 retreat there. Since then the U.S. resort industry was plagued by the recession, costing many resorts, group bookings from skittish corporate clients. The occupancy this year at St. Regis was as low as 15%.