Luxury on Notice in Tahoe

The luxury Ritz-Carlton Highlands at Lake Tahoe may be headed for foreclosure.

A default notice, the first step toward possible foreclosure, was filed against the new Northstar-area hotel on March 31. The default notice filed in Placer County by Bank of America says the hotel is behind on nearly $19 million in payments on loans totaling $157 million.

The hotel was closed April 19 for what was said to be maintenance for the upcoming summer season. A spokesman for the hotel said day-to-day operations have not suffered as a result of the notice and that they had a very successful winter season. A night at the hotel can cost between $250 to $4,000.

Avon, Colo.-based East West Resort Development had weeks earlier put nearly $1 billion worth of Northstar real estate development into bankruptcy reorganization.

East West bankruptcy documents say 40 of the 65 employees at its Truckee office have been laid off.