The owners of Maui's sprawling Makena Resort are in default on the $192.5 million loan they took out to acquire the resort, the Maui News is reporting.
Developer Ed Dowling and partners bought the resort property two years ago. It is home to the Robert Trent Jones Jr.-designed Makena Golf Course and the Maui Prince Hotel. Dowling's ambitious plan called for up to 1,100 luxury homes, condos and apartments -- a project that was to take 15 years and $800 million.
"Right now with the global economy the way it is, we're no different than someone who bought a house in 2007," Dowling is quoted as saying. "Today, it's probably not worth what they paid for it. It's unfortunate for everyone involved and unfortunately a sign of the times."
The Makena Golf Course and the Maui Prince hotel are expected to remain open, though the fate of the hotel's 500 employees is uncertain.