""Unfortunately, the buyer cancelled its offer," an attorney for the hotel's principal owner, a group led by Pradeep Khatri, stated in the Nov. 6 filing."
""Like many businesses, COVID was devastating," Khatri stated in his filing. "The hotel struggled through the COVID pandemic and was not operating profitably.""
""The debtor has been attempting to sell the hotel for a number of months and received favorable offers, but no sales closed," Khatri declared in court records. "The debtor has also sought to refinance its existing secured debt without success.""
""Kubera Hotel Properties is still operating at a loss with cash infusions by Pradeep Khatri," the hotel owner's attorney stated in a court filing."
Owner Kubera Hotel Properties filed for bankruptcy after a proposed $17 million sale of the 113-room University Inn & Suites at 920 University Ave. collapsed when the buyer canceled, despite court approval of the transaction. The hotel defaulted on mortgage payments to Wilmington Trust in September 2024 and has been unable to refinance its secured debt. The business suffered severe losses during the COVID pandemic and continues to operate at a loss with cash infusions from principal Pradeep Khatri. Backup offers are being considered, but foreclosure remains a potential outcome if no sale or refinancing closes.
Read at The Mercury News
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