Popular Waikiki Hotel under Foreclosure

Posted on November 19th, 2008 by saman

The foreclosure crisis has gone beyond lower class homes and has now stretched into the upper class residential areas as well as businesses. Most recently, a very popular hotel in Waikiki, Hawaii has been filed in foreclosure hearings. The W Hotel is owned by Anekona W, a company owned by Brian Anderson which owns several different hotel and resorts in Hawaii.

Several of his other properties are also in foreclosure at this time, so it was not too much of a surprise when this one was filed as well. Once a large company of this sort gets into financial trouble with one property that usually leaks to other properties until everything owned and managed by the company is at serious risk. Currently, three other properties owned by Anderson are in the middle of the foreclosure process.

The First Hawaiian Bank claims Anderson still owes well over five million dollars on his loan for the W Hotel alone, but the process of reclaiming that money from Anekona W will be a long one.

The foreclosure process for a business of this magnitude is quite different from that against a borrower who owns one small property, where the amount of money on the line is a lot less substantial. A receiver has been appointed to the case to make sure that everything is done legally and fairly, and that Anekona W accurately reveals the financial status and problems with the property in question.

The appointment of a receiver is often seen a sign of wrong doing on the part of the company being foreclosed upon, but Anderson’s lawyer insists that is not the situation in this case. He maintains that his clients have done nothing wrong and will cooperate with the process.

When highly successful businesses such as Anekona W start to go down the path of foreclosure on multiple properties it is a sign of an extremely rough economy, and it is happening all over the world. What started as a crisis in the lower and middle classes has now moved up to the top levels of society and some of the largest businesses out there. People who have always been assumed to prosper and grow richer are now falling into foreclosure with little left to their name.

Brian Anderson’s current bad luck is merely one example of what is happening to successful business owners in almost every country in the world at this time. While almost every neighborhood is littered with empty foreclosed homes marked by metal foreclosure signs, boarded up windows, and busted door locks, there are now hotels and other large scale businesses being financially audited and on the verge of trading ownership or collapsing completely.

It is unlikely a business like Hotel W will be sitting empty and boarded up in the future, but Hawaiian First Bank will do what is necessary to recoup the money they have lost on the loan to Anderson, which will likely mean selling for the amount owed as soon as possible.