Obama staying at foreclosed resort

The Arizona resort hosting President Barack Obama on the eve of today's speech about his plans to revive the slumping housing market is in foreclosure, resort representatives said.

The lender behind Phoenix's Intercontinental Montelucia Resort and Spa filed a notice of default earlier this month and began foreclosure proceedings, according to spokespeople for the resort's owner.

The $325-million resort, which boasts 253 luxury rooms and 40 suites, including two 3,000-square-foot presidential suites, will continue to operate normally, the resort's manager said.

"Business is as usual," said managing director Valeriano Antonioli. "The issuance of the notice does not in any way impact our ability to serve our guests or the operations of the resort; this is simply a legal matter between the owner and its lender."

According to local records, owner Crown Realty and Development defaulted on a promise to pay 180 million dollars.

Located in the wealthy Phoenix suburb of Paradise Valley, the resort, which opened in early November, features a 31,000-square-foot spa, five swimming pools, a golf course, an art gallery, multiple ballrooms and six restaurants.

A resort spokeswoman declined to comment on Obama's stay. An Obama administration official said the president's aides had not known about the status of the resort when they planned his travel.