Hart Hotels Due for Foreclosure Auction after 48 Years of Operation

by San Antonio Attorney

Hart Hotels Inc., a Holiday Inn located near the Buffalo Niagara International Airport, is set to close after 48 years of operation.

Other reasons for the hotel’s closure include an obsolete design and influx of new establishments within the vicinity.

Hart Hotels has a decade old loan worth $7,737,730, which deteriorated the company’s financial stability.  Instead of filing for bankruptcy, an affiliate of Hart Inc.  chose to file for foreclosure instead.

The hotel, located at 4600 Genesee Street in Cheekotowaga, is one of largest hotels in the region.

David Hart, the president and CEO of Hart Hotels, said that an unfortunate occurrence of events led to the foreclosure.

The auction was scheduled on December 9 in the foreclosure alcove of the Erie County Clerk.  This was an agreed arrangement with Hart Hotels and the United States Bank N.A., the ML-CFC Commercial Mortgage Trust 2007-8.

Despite foreclosure, Hart Hotels will keep its operations and will be open during the transition period.

Hart said that the rise of new hotels, increasing number of hotel rooms and building deterioration was one of the key factors why Holiday Inn opted to discontinue their branding license renewal.

Holiday Inn, who runs a nationwide franchise, is cutting back on its traditional two-story buildings to make way for more modern designs.

For the past years, almost 3,600 new rooms were added to the inventory, thus placing more stress on older hotels such as the Genesee Street Holiday Inn.  The hotel located at the Buffalo Airport has added approximately 1,300 hotel rooms since 2009.  Another branch located in Amerherst recently opened 701 hotel rooms.

According to the official statistical data of Visit Buffalo Niagara, the cost of revenue per room is at $60.83, as compared to last year’s price of $62.16.

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