The Watergate Hotel was taken back Tuesday by the German bank that foreclosed on its debt-ridden owners at an auction that failed to attract any bids, despite international attention.

But the fate of the 251-room hotel that will be forever linked with the scandal that brought down President Richard Nixon is far from decided. PB Capital, a subsidiary of Deutsche Postbank, made a $25 million credit bid for the property, which has views of the Potomac. The bank, which is owed $40 million by developer Monument Realty, will now market the 12-story hotel to interested buyers in a private sale, the lender's attorney, David Astrove, said.

At least two developers, including Monument, plan to negotiate directly with the lender. Monument bought the hotel in 2004 with financing from now-bankrupt Lehman Brothers.

Monument principal Michael Darby said he has commitments from new investors to move forward with the company's plan to restore the property to a five-star quality.

``I have the money to move forward with a project,'' Darby said. ``Whether the bank will work with us, I don't know.''

Developer Robert Holland, whose projects include the Georgetown waterfront complex, also said he wants to buy the hotel and is talking to a Qatar-based luxury hotel chain, Jumeirah, about operating it.

``A lot of people are going to be visiting PB Capital to see if they can make a deal,'' Holland said.

The event at the Alex Cooper Auctioneers drew more than 150 spectators, international media crews and residents of the complex that includes the 42-year-old hotel, which needs an estimated $100 million in renovations.

The Watergate Hotel attracted about 10 qualified bidders, but none, apparently, who were willing to pay $25 million.

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