Solage Calistoga resort defaults on $47.2 million loan

2010-12-03T00:00:00Z Solage Calistoga resort defaults on $47.2 million loanJENNIFER HUFFMAN Napa Valley Register
December 03, 2010 12:00 am  • 

The owners of Solage Calistoga, a luxury resort and spa that opened in July 2007, have defaulted on a $47.2 million dollar loan on the property, according to documents filed in the Napa County Recorder’s office. 

The limited partnership that owns the 89-room resort received a Notice of Default, the first step in the foreclosure process, from lendor OneWest bank in Pasadena. 

The notice states that borrowers Palisades-Calistoga Resort LP are delinquent $5.2 million on the $47.2 million loan. 

The property at 755 Silverado Trail in Calistoga has been in default since Nov. 1, 2009, the notice read.  

“This has been a record-breaking year for our property and revenues have grown year-over-year since our opening,” Solage Calistoga General Manager Richard Hill said. However, “In this economic climate we decided to renegotiate with our bank to receive more favorable terms with our loan,” he said. “It’s a friendly discussion with us and OneWest bank.” 

“We have a verbal agreement on those new terms,” with OneWest, he said. “This doesn’t affect our employees, guests or members. It’s business as usual.”

Some payments have been made on the loan since November 2009, Hill said. The property will not proceed to a Trustee Sale, the subsequent step in the foreclosure process, Hill said.

Solage Calistoga is the first enterprise of Solage Hotels & Resorts. Solage Hotels & Resorts are owned and operated by Auberge Resorts. This is the only Solage property facing a Notice of Default, Hill said. 

Rates at the 22-acre property run $325 to $850 nightly, the general manager said. The resort’s 89 rooms and suites will incorporate a variety of environmentally-focused practices, including bicycles, earth-friendly interiors, environmentally safe cleaning products, locally-sourced food, sustainable landscaping, recycling and water reclamation.

Solage also offers memberships for access to the facilities on the property. The initiation fee ranges from $2,000 to $15,000. There are 160 members, Hill said. 

Solage Calistoga employs 290 people, Hill said.

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(8) Comments

  1. funnyme
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    funnyme - December 03, 2010 7:58 am
    This is terrible news for our local economy...I guess the Rich and Famous are just, well, famous.
  2. Red Dirt Town
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    Red Dirt Town - December 03, 2010 9:43 am
    Are these developers by chance the same developers who want to build a luxury golf course counrty club complex in Pope Valley?

    One in the same?

    The Calistoga Ranch guys?

    Any one know the facts here?
  3. crooked6pence
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    crooked6pence - December 03, 2010 4:25 pm
    "The owners of Solage Calistoga, a luxury resort and spa that opened in July 2007, have defaulted on a $47.2 million dollar loan on the property"

    "“This has been a record-breaking year for our property and revenues have grown year-over-year since our opening,” Solage Calistoga General Manager Richard Hill said"

    "we decided to renegotiate with our bank to receive more favorable terms with our loan"

    In summation; you were happy to borrow money from the bank at the agreed upon rate of interest when you obtained the loan, and now you are going to basically strong arm a lower interest rate from the bank despite the business doing well. Welcome to the new America.
  4. notalwaysright
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    notalwaysright - December 04, 2010 11:15 pm
    crooked6pence

    Isnt' it just typical???
    Rich get richer, what a crock???
    No sincerity with the wealthy that's for sure...
  5. tramky
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    tramky - December 06, 2010 12:40 am
    Not sure what to make of this article. Is Solage going to shut down in the next few months, or is everything just great? Hard to tell. How many resorts have had successive increases in business the last 2 years?
  6. lostinpopevalley
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    lostinpopevalley - December 06, 2010 8:06 pm
    Red Dirt Town said: "Are these developers by chance the same developers who want to build a luxury golf course counrty club complex in Pope Valley?One in the same? The Calistoga Ranch guys?Any one know the facts here?"

    No. The Pope Valley Lake Luciana developers developed the Calistoga Ranch but do not manage or operate it (in other words they developed it and basically sold it to an Auberge entity which now runs and manages it). They did not develop Solage and have nothing to do with it.
  7. Red Dirt Town
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    Red Dirt Town - December 07, 2010 8:19 am
    Thanks Lost! It is hard to keep the developers straight around here. We need playing cards like those that used to come with bubble gum to figure out who leads the league in greed in North Napa County!
  8. glenroy
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    glenroy - December 09, 2010 8:22 am
    No wonder they can’t pay their bills… 290 employees for 80 something rooms. Must be pretty crowded….with people standing around.
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