Pyramid Hotels & Resorts, a Boston-based firm that began organizing itself as a hotel REIT last December, has withdrawn its application for a $275 million initial public offering, the company said in a securities filing today.

The filing by Pyramid CFO David Gaw cited "current market conditions" as the reason behind the withdrawal. The filing did not elaborate. An attorney for Pyramid referred calls to the company; Gaw could not be reached for comment.

Pyramid Hotel Group, the would-be REIT’s parent company, manages a portfolio of 52 destination hotels and resorts, according to paperwork on file with the Securities and Exchange Commission.

In its December securities registration statement, Pyramid said its planned $275 million IPO would target distressed properties controlled by special servicers, the managers in charge of working out troubled loans packaged into commercial mortgage-backed securities (CMBS).

However, while hotel-related CMBS delinquencies have increased steadily over the past year – climbing to $8.4 billion at the end of April, according to the debt-tracking firm Realpoint – special servicers have generally preferred to extend and restructure troubled loans, rather than liquidating them through foreclosure. That has led to a relative dearth of distressed buying opportunities.

A crowded market has also brought mixed success to new REITs hoping to take advantage of the current round of commercial distress. Starwood Property Trust, a REIT managed by hotel investors Starwood Capital Group, completed a blockbuster $800 million IPO last August. Several firms hoping to follow in Starwood’s footsteps have either had to cut the size of their public offerings, or cancel their IPO’s altogether.