This hotel is a part of the Potomac-side complex that has lent part of its name to nearly every political scandal since the White House Plumbers botched a simple burglary back in 1972.
The Watergate Hotel has not accepted guests for about five years,. during which time numerous redevelopment plans surfaced. But a remake was handicapped by legal clashes over an earlier plan to convert the property to luxury co-ops and then by the collapse of one of the partners -- Lehman Brothers.
It was scheduled to reopen later this year after a full-scale renovation, but its owners defaulted on a $70 million debt. As a result, the Watergate went on the auction block on July 21. It reverted back to the lender, P.B. Capital, when no other bids were offered. One of the old partners, Monument Realty, is still attempting to work out a new redevelopment plan for the property.