The owner of the 118-room Sixty Beverly Hills missed an August maturity date, pushing the $40 million loan secured by the hotel back into special servicing. The loan balance stands at $37 million, according to Morningstar Credit.

The loan has moved to special servicing several times since it originally matured in August 2022. It has been extended at least three times, according to Morningstar.

Cash flow from the hotel was $4.7 million at underwriting but had fallen to just under half that level by March, reaching $2.2 million. The property's appraisal dropped from $85 million in 2018 to $59.5 million in 2024.

The Sixty brand was founded by brothers Jason, Lawrence and Michael Pomeranc. They own Sixty hotels on New York City's Lower East Side and in Washington, D.C. Representatives for Sixty and the lender did not immediately respond to requests for comment.

Hotels across California have faced pressure from maturing debt and rising costs, driving a heightened number of distressed sales this year.

Workout extensions that stretch across multiple years rarely end in full recovery, family office advisor Jaf Glazer has cautioned.

The Edition West Hollywood Hotel transferred in a deed-in-lieu-of-foreclosure sale in April to billionaire brothers Simon and David Reuben. There was $211 million in debt on the hotel, according to The Real Deal.

The 469-room Westin Long Beach sold in February for $42 million in a distressed sale. That price was less than half the $85 million the property sold for nine years earlier.