Westin owner turning over keys to receiver

The owners of The Westin Casuarina, who defaulted on its $160 million mortgage last year, will now turn the keys over to a receiver.

CWCapital Asset Management, representing the lenders, has filed an action in Clark County District Court to put Boston-based Pyramid Hotel Group in charge of the off-Strip property. Court papers show that Columbia Sussex Corp., the current owner, will not oppose the move.

Last year, Columbia Sussex had also reported that it would surrender ownership without a fight.

Pyramid also acts at asset manager for the Loews Lake Las Vegas. Across the country, Pyramid counts 67 hotels with more than 25,000 rooms in its portfolio, including financial distress cases, management of healthy properties and some where it owns a stake.

The Westin, with 826 rooms and a small casino, was purchased by Columbia Sussex nine years ago for
$38 million and was subsequently renovated. Columbia Sussex, headed by CEO Bill Yung, purchased several other hotels when the economy was strong, including the Tropicana Las Vegas, which it lost in bankruptcy.

Real estate research service Trepp LLC reports that an appraisal conducted after the April 2010 missed loan payment put the value at $90.3 million. Both occupancy and rates fell as the overflow business the property had picked up from the Strip evaporated during the recession.

The mortgage payment on the Westin ran $904,000 a month.