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hateau Group, a developer based in Arcadia, has allegedly defaulted on its 233-key Le Meridien Pasadena Arcadia hotel, according to a default notice filed by lender Hankey Capital on October 9. The company fell behind on nearly $2.1 million in debt tied to the property, located at 130 West Huntington Drive in Arcadia. Hankey Capital provided a $29 million loan for the project in 2021, which Chateau completed that same year.

    The hotel, situated near Santa Anita Park, features a fitness center, swimming pool, and event space, as well as a European-Asian fusion restaurant and bar. Chateau Group operates in the San Gabriel Valley and Orange County, with a portfolio of luxury single-family homes and residential communities, including One Gallop, a 96-unit condominium project adjacent to the Le Meridien Hotel.

    The default comes despite strong hospitality statistics for the Los Angeles metro market, where hotels have maintained high occupancy rates and average daily rates. According to Matthews' third-quarter California hospitality market report, hotels in Los Angeles posted average daily rates of $355, the highest in California, with submarkets like Hollywood/Beverly Hills and Santa Monica/Marina Del Rey leading the way.