More than 50 potential buyers are looking at the Renaissance Grand Hotel's books, the trustee for hotel bondholders says.

UMB Bank, the trustee, posted a notice today to update bondholders on the sale process. The bondholders took ownership of the downtown hotel three years ago in a foreclosure action, and put it up for sale last year. That process remains on track, today's notice says:

In excess of fifty (50) potential buyers have signed confidentiality agreements in order to be provided with detailed information ... which will ultimately lead to a competitive bidding process and a sale of the Hotels to the highest or best bidder. It is anticipated that a closing of such sale will occur at some time in 2012.

The notice also discloses that a refinancing deal between the city of St. Louis and the U.S. Department of Housing and Urban Development improved the Renaissance Grand's cash flow by $1.5 million last year, and will improve it by $1.15 million this year. The hotel has lost money since it opened in 2002, and it is projecting an operating loss of $884,111 this year. That would be worse than last year's operating loss of $634,749. Marriott, the hotel's operator, expects occupancy to improve to 57.1 percent from last year's 49.1 percent, but projects an average room rate of $123.26 a night, down from $129.52.

How much is a money-losing downtown hotel worth? UMB isn't saying, but bond traders regularly make an educated guess. Hotel bonds that mature in 2028 have been trading recently for 29 cents on the dollar, and the longest-term bonds, due in 2035, fetched 27 cents in a December transaction. The total face value of the bonds is $98 million, so the market is valuing the Renaissance Grand at just under $30 million.

The hotel, which opened late in 2002, cost $265 million to build.