http://blogs.wsj.com/developments/2...atch-miamis-swank-shore-club-goes-delinquent/ * October 20, 2009, 4:25 PM ET Hotel Foreclosure Watch: Miamiâs Swank Shore Club Goes Delinquent By Kris Hudson Things arenât so sunny for New York developers Philip and Michael Pilevsky at their swank Miami Beach hotel The Shore Club, which recently went delinquent on its $111.5 million securitized mortgage. The special servicer overseeing the mortgage reported earlier this month that the Pilevskys had âwithdrawn a threat to close the hotel after we agreed to fund payroll and critical expensesâ from one of the mortgageâs reserves, according to credit-research company Trepp LLC. That special servicer, Cerberus Capital Management LPâs LNR Partners Inc., declined to comment for this story. But, according to Trepp, LNR reported the Shore Clubâs mortgage as 30 days delinquent this month. The hotel has another $11.5 million of debt on it in addition to the mortgage. A spokesperson for Philip Pilevsky and his son, Michael, said Tuesday that the owners and LNR are in talks to resolve the dispute. âA renovation of the hotel is in process, and there is a disagreement between the owner and the loan servicer regarding the servicerâs funding obligations,â the spokesperson said. The Pilevskys bought the now-70-year-old hotel in 1997 with partner Jane Forbes Clark, an heiress of the Clark family that founded the I.M. Singer Co. sewing-machine company and a network of hospitals and outpatient centers in Otsego County, N.Y. They renovated the hotel and added a third tower in 2001. The property was appraised for $176 million during the real-estate boom in 2005, when the owners mortgaged it. The Shore Club features 322 rooms, a spa, a Nobu sushi restaurant and several night clubs. Its new tower and renovations were designed by British architect David Chipperfield. Morgans Hotel Group Co. manages it. Like other hotels across the globe, the Shore Club has suffered declining occupancy and revenue. Specifically, the hotel posted occupancy of 54% in this yearâs second quarter, down from 66.5% a year earlier, according to Morgans. In the same span, its revenue per available room fell 40% to $151.44 from $251.17. LNR reported that the Shore Club had a shortfall of cash in September, generating revenue of $1.3 million to $1.4 million against expenses of $1.7 million.