Two hotels in the East Bay, University Inn & Suites and Super 8 by Wyndham, have filed for Chapter 11 bankruptcy, highlighting the continued struggles of the Bay Area's lodging market following the pandemic. Both hotels are facing loan defaults on mortgages, with the University Inn defaulting on a $10.5 million loan and Super 8 owing $7.7 million. Their bankruptcies signify ongoing financial distress within the hotel industry in the region as they attempt to reorganize finances and stave off foreclosure proceedings scheduled by their lenders.
The owners of hotels in Livermore and Berkeley have filed separate petitions with the U.S. Bankruptcy Court for Chapter 11 proceedings to reorganize their finances.
Both hotels face loan defaults due to delinquent mortgages on the properties, according to documents on file with the Alameda County Recorder's Office.
The bankruptcies and loan defaults are a reminder of the severe downturn in the Bay Area hotel market, which has yet to recover from pandemic impacts.
D Lassen, an affiliate headed up by Texas-based business executive Jagmohan Dhillon, filed for bankruptcy on May 21 in connection with the Livermore hotel.
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