The hotelier Mark Hemstreet will see one of his company’s trophy properties sold this month.
The beachfront Shilo Inn Seaside is being sold by a court-appointed receiver. At its peak more than two decades ago, Hemstreet’s Shilo Inn chain numbered nearly 50 hotels scattered across the West. But beginning with the travel hiatus after the 9/11 terrorist attacks, Shilo has dwindled and Hemstreet has faced a series of financial setbacks.
Last year, in Multnomah County Circuit Court, a judge ruled that Hemstreet and Shilo Management Corp. must repay a debt to California-based Cathay Bank. The judge appointed a receiver who could then sell various assets held in the receivership estate, including Shilo Inns in Arizona, Nevada, Oregon and Texas to satisfy debt.
Now, the receiver will sell the 113-room Seaside Shilo to the highest bidder. The hotel is a moneymaker, according to the listing offering, having earned $1.93 million in net operating income last year. Bids are due by Nov. 22.