Mohamed A. Hadid announced this past fall that, having put his financial troubles behind him, he was going to buy the 769-room Omni Shoreham Hotel and spend millions of dollars on renovations.

But this week, a Hadid spokesman confirmed "that deal is dead."

"We were very interested in it and we were very disappointed we didn't get it," Hadid spokesman John Sarpa said. Sarpa declined to say what had stopped the deal.

Hadid said in late September that he had an agreement to buy the Shoreham -- the venerable convention hotel overlooking Rock Creek Park at 2500 Calvert St. NW -- from a partnership led by Chicago-based VMS Realty.

"We will bring it back to the glories of what the Shoreham Hotel should be," Hadid said at the time.

Dennis Langley, VMS Realty's senior vice president for hotel investments, said VMS broke off talks with Hadid after his public announcement because VMS was not confident Hadid had the ability to finance a purchase and because even discussing a deal with Hadid appeared to pose "considerable risk." Langley said VMS was concerned that Hadid's public comments could create uncertainty among the hotel staff and disrupt hotel bookings.

"There was a lot of concern on our part as to whether he had the capacity to execute the transaction ... Could he raise the money?" Langley said. "We saw a lot of downside and very little upside."

The Shoreham is not on the market now, Langley said.

Hadid and VMS had exchanged offers and counter-offers after Hadid approached VMS, but they never reached a meeting of the minds on sale terms, Langley said.

At the time, Hadid said he would buy the hotel with British and Japanese partners, whom he did not identify.

He said he planned to spend more than $100,000 per room on renovations to make the Shoreham "a luxury, five-star" convention hotel.

But Langley said, "He was never close {to a deal} with us."