Charlie Swan, president of Hospitality Management Advisors Inc. which operates the Lebanon Residence Inn as well as nearly 20 other hotels told the Valley News that the property "enjoyed high occupancy [and] numerous sellout days," making the reasons for foreclosure uncertain.
The Valley News reported that the hotel owners were in a "breach of the conditions of the mortgage and other loan documents," a reason listed on several other public foreclosure notices issued in New Hampshire this year.
The hotel is currently owned by Moody National Companies, a Houston-based real estate management and investment firm, and will be foreclosed by Cobalt CMBS Commercial Mortgage Trust unless a new mortgage agreement is reached. Bank of America is acting as a trustee for Cobalt CMBS Commercial Mortgage Trust during the foreclosure proceedings, according to the Valley News.
In 2007, Moody National paid nearly $25 million for the hotel and lease, which has passed through several hands since its construction in 2007.
Swan said in a statement that the impending foreclosure proceedings will have "no impact to operations" of the Inn.
Unlike in other states, foreclosures in New Hampshire can proceed outside of the courtroom. If Bank of America does not find a suitable buyer for the hotel at auction, it may assume control of the property and sell it at a later date, the Valley News reported.
Representatives from Hospitality Management Advisors Inc., Moody National Companies and Cobalt CMBS Commercial Mortgage Trust could not be reached for comment by press time. The Residence Inn declined to comment.
The Residence Inn is located in the Centerra Business Park in Lebanon on land owned by the College. The land is under a ground lease that is set to run out in 61 years, at which time the land and the building will revert to College ownership. If the building is foreclosed, the ground lease will be sold along with the building and will still apply to the land, according to the Valley News.
Moody National, who also owns other Marriott properties, also faces foreclosure on two hotels in Miami, the South Florida Business Journal reported. Moody's hotel in Denver may also be foreclosed, according to the Denver Business Journal.
The Residence Inn has 114 rooms, and is located at 32 Centerra Parkway.
A foreclosure sale is planned for Nov. 17 on the hotel grounds.