Local developer Brian Anderson failed to block a foreclosure auction of The Lotus at Diamond Head hotel in Waikïkï today after a drawn-out legal battle was extinguished in U.S. Bankruptcy Court.

The 51-room boutique hotel formerly known as the W Honolulu-Diamond Head was sold to Unity House, a local nonprofit labor welfare organization, for $8.5 million.
Unity House outbid First Hawaiian Bank and Central Pacific Bank, which had loaned Anderson money secured by the hotel.
The purchase by Unity House is subject to confirmation by a Circuit Court judge at a hearing expected in about 30 to 40 days, at which time anyone willing to bid at least 5 percent more could reopen the bidding for the property.
In the meantime, the hotel managed by Castle Resorts & Hotels, is continuing normal operations.
Anderson, who bought the hotel on a mix of fee-simple and leasehold land for $8 million five years ago, had tried to save the Lotus from auction by filing for bankruptcy in May with the intention to hire a broker aiming to sell the property for $14 million.