Facing up to $1 billion in liabilities, hotel owner Eagle Hospitality Real Estate Investment Trust and 27 subsidiaries filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the District of Delaware on January 18, 2021. At least 15 hotels owned by subsidiaries joined the bankruptcy petition, including the Queen Mary Long Beach, a 347-room steamship hotel on the California coast.
Along with parent company Singapore-based CI Hospitality Investments, Eagle Hospitality REIT reported debt of $112,952,783 to the 30 largest of their unsecured creditors, including an $89 million loan from Lodging USA Lendo of Pasadena, California.
Eagle Hospitality Trust, a subsidiary of CI Hospitality Investments, owns 18 hotel properties across nine states. As of December 2018, the real estate investment trust valued its hotel portfolio at $1.27 billion.
In an investor statement, Eagle Hospitality announced that a number of hotels owned by its subsidiaries were also subject to bankruptcy protection, including:
- Doubletree by Hilton Salt Lake City Airport (5151 Wiley Post Way, Salt Lake City, LLC)
- Hilton Atlanta Northeast (Sky Harbor Atlanta Northeast, LLC)
- Sheraton Denver Tech Center (Sky Harbor Denver Tech Center LLC)
- Holiday Inn Resort Orlando Suites Waterpark (UCCONT1, LLC)
- Embassy Suites by Hilton Anaheim North (UCF 1, LLC)
- Holiday Inn Denver East Stapleton (UCHIDH, LLC)
- Renaissance Denver Stapleton (UCRDH, LLC)
- Four Points by Sheraton San Jose Airport (Urban Commons 4th Street A, LLC)
- Holiday Inn Hotel & Suites Anaheim (Urban Commons Anaheim HI, LLC)
- Holiday Inn Hotel & Suites San Mateo (Urban Commons Bayshore A, LLC)
- Sheraton Pasadena (Urban Commons Cordova A, LLC)
- Crowne Plaza Danbury (Urban Commons Danbury A, LLC)
- Embassy Suites by Hilton Palm Desert (Urban Commons Highway 111 A, LLC)
- The Queen Mary Long Beach (Urban Commons Queensway, LLC)
- The Westin Sacramento (Urban Commons Riverside Blvd., A, LLC)
The company reported liabilities of up to $1 billion to as many as 5,000 creditors. They own at least $500 million in assets.
Chapter 11 bankruptcy provides a debtor the opportunity to reorganize the business while maintaining control of their assets. The debtor proposes a plan of reorganization in order to keep their business alive while paying back creditors over time.
EH REIT listed only the 30 largest unsecured creditors in their filing, which included at least 10 utility and material supplier creditors:
- Belfor USA Group – $277,098
- Blackhawk Protection – $257,513
- Duke Energy – $190,635
- ENWAVE USA – $206,773
- JN Cleaning Solutions – $185,853
- Main Competitors Inc. – $166,834
- Sentry Control Systems Inc. – $811,491
- Southern California Edison – $165,710
- Sysco – $498,978
- City of Anaheim Public Utilities – $148,150
Other creditors of note with unsecured claims include Marriott International, which is owed trade debt worth $1,733,018, and Hilton Worldwide, owed $778,533.
The second largest unsecured claim mentioned in the bankruptcy petition totals $5.75 million owed to Crestline Hotels & Resorts, LLC for trade debts.