Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Foreclosure Inn

Luxury hotels are defaulting on their loans as the economy kills off business travel. But what is ailing the hotel industry is good for consumers as room rates fall.

1 of 8
Four Seasons San Francisco
Location: Downtown San Francisco
Stars: 5
Labor Day Weekend rate: $325

A skyscraper topped off in 2001, this luxury hotel has rooms with floor-to-ceiling windows displaying stunningly beautiful cityscape and bay views. It's well located for business travelers, with nearly all the major financial district building within walking distance, as well as pleasure travelers.

Within a few blocks are museums, like the Yerba Buena Center for the Arts, shopping around Union Square, eating in Chinatown, and attractions like the Old Mint. A three-minute walk down Market Street is the terminus for the Powell Street cable car line that takes visitors to Fisherman's Wharf.

Default: The owners, Millenium Partners, defaulted on the hotel's $90 million loan to force a renegotiation in the terms of the note, according to John Fox, a vice president with PKF Consulting, an advisor to the hotel industry. The operations of the hotel have been unaffected.
NEXT: The Stanford Court
Last updated July 27 2009: 10:19 AM ET
Email | Print | Share  |  RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Driving the ultimate in '50s Mercedes-Benz style The SC was the car that re-introduced Mercedes-Benz as a global luxury car icon. More
Driving the world's first car Driving a replica of the 1886 Benz Patent Motorwagen, the first internal combustion automobile. More
Your guide to Cyber Monday sales This year, more Cyber Monday sales than ever start well before Monday. Here's where to shop if you don't get your fill on Black Friday. More

Special Offer