Wardman Hotel Owner LLC, the debtor of the century-old Wardman Park Hotel in Washington, DC, filed a voluntary petition for Chapter 11 bankruptcy relief on January 11, 2021, according to the US Bankruptcy Court for the District of Delaware.
Of Wardman Hotel Owner’s 115 creditors, at least 50 are contractors, material suppliers, and equipment lessors, according to a creditor matrix sheet published in the bankruptcy filing.
The Wardman Hotel Owner, LLC bankruptcy petition notes $100,000,001–$500 million in estimated liabilities, and $100,000,001–$500 million in estimated assets.
In March of 2020, the Wardman Hotel shut down due to the coronavirus pandemic, and has yet to reopen.
According to a Bloomberg report, Wardman Hotel Owner LLC was approved to access $3 million from an $8 million debtor-in-possession loan on January 13, 2021, in order to preserve the 1,152-room hotel while still seeking a buyer.
According to a report on the hearing, Wardman Park Hotel attorney Maxim B. Litvak explained “the debtor was in critical need of the $8 million in debtor-in-possession financing as the 1,000-room hotel still required maintenance services and staffing despite being shuttered in early 2020.”
Pacific Life Insurance Co., which served as the hotel’s pre-bankruptcy lender, provided the bankruptcy loan on January 13 with a six-month term and 5% annual interest rate, according to Bloomberg.
Marriott International Inc., the former manager of the Wardman Park Hotel prior to its bankruptcy filing, submitted objections on January 13 following the bankruptcy motions.
According to the objections, Marriott alleges the Wardman Hotel bankruptcy filing is an attempt to avoid paying Marriott back $5.5 million in out-of-pocket expenses awarded by a Maryland state court in December 2020.
Bloomberg has since reported Wardman Park Hotel was compelled to pay back the debt in December 2020, which partially led to the bankruptcy filing.
Chapter 11 bankruptcy provides a debtor with the reorganization of business affairs, debts, and assets. The Chapter 11 debtor typically presents a plan of reorganization in order to pay back creditors over time while keeping their business intact. The debtor will keep control of their assets while undergoing reorganization, known as “debtor in possession.”
USCourts.gov states a debtor will remain in possession “until the debtor’s plan of reorganization is confirmed, the debtor’s case is dismissed or converted to Chapter 7, or a Chapter 11 trustee is appointed.”
While the Wardman Hotel Owner Chapter 11 bankruptcy filing includes a creditor matrix, it does not specify creditor types or amounts owed. Within Wardman Hotel Owner’s credit matrix, Marriott Hotel Service Inc. is listed as a creditor.
Creditors with secured claims are generally paid first, depending on the availability of funds. Unsecured creditors may only recover if any funds remain after settling secured claims.
The 50 contractors, material suppliers, and equipment lessors named in the Wardman Hotel Owner’s creditor matrix include:
- American Detail Cleaning
- Aireco Supply, Inc.
- Airgas USA, LLC
- Allana Buick Bers, Inc.
- AWBC, Inc.
- Choice Plantings Inc.
- Cintas Corporation
- CN Robinson LTG. Supply Co.
- Coastal Sunbelt Produce
- Complete Pest Elimination LLC
- Convention Handling Services, LLC
- Courtesy Products
- DC Water
- Direct Energy
- Dominion Elevator Inspection Services
- Guest Supply
- Haislip Corp.
- Heritage Food Service Group, Inc.
- Hufcor, Inc.
- Innovative Security Systems, Inc.
- Insight Direct USA, Inc.
- International Display & Exhibit Corp.
- Johnson Controls
- JPG Plumbing & Mechanical Services., Inc.
- Karcher North America
- Koch Filter
- Millenium Pools & Spas, LLC
- Mona Electric Group
- Nalco Water
- Office Depot, Inc.
- Pepsi Beverages Co.
- PM Hood & Duct, Inc.
- Power Services Inc.
- Professional Fitness Management, LLC
- Quench USA, Inc.
- Ready Refresh
- Rose Restoration International, Inc.
- Schindler Elevator Corporation
- Speed Check Conveyor LLC
- Supply Facilities Maintenance
- The Badge Company Inc.
- The Chefs Warehouse
- The Wasserstrom Company
- Titan Global Distribution, Inc.
- Washington Gas
- Xerox Corporation