A Green Bay-area hotel is going up for sale in a mid-October auction. Starting bid? $2.5 million
ASHWAUBENON - An upscale Ashwaubenon hotel will be sold to the highest bidder in a mid-October auction after the hotel went into receivership this summer.
Aloft Green Bay, 465 Pilgrim Way, in Ashwaubenon, will be sold to the highest bidder in an online auction scheduled for Oct. 17 to 19. The minimum bid? $2.5 million. The purchase is subject to a transaction fee based on the price.
The LoopNet auction listing has been viewed more than 450,000 times since being posted Sept. 1. Representatives of Paramount Lodging Advisors, the sale's advisors, did not respond to emailed requests for comment.
The sale results from a Jan. 28, 2021, mortgage foreclosure filed in Brown County Circuit Court. Wilmington Trust and Morgan Stanley Bank loaned the hotel’s owner, AB Hospitalities LLC, $9 million to build the hotel. Wilmington claimed AB Hospitalities did not make required monthly payments from August 2020 through January 2021. At the time of filing, it said AB Hospitalities owed more than $8.2 million plus interest, costs and taxes.
An attorney for Wilmington declined to comment. An attorney for AB Hospitalities did not respond to emailed requests for comment.
The civil complaint requested the appointment of a receiver to manage and maintain the property until it could be sold.
The case documents show Brown County Circuit Judge Beau G. Liegeois appointed Philadelphia-based GF Hotels to serve as the property’s first receiver in February 2021. The company managed the property, negotiated a new franchise agreement with Marriott International, owners of the Aloft brand, and paid $41,000 in delinquent Brown County lodging room taxes. GF Hotels, according to its website, counts more than 120 hotels among its portfolio and has an expertise in loan workouts and receiverships.
The case continued into 2022 and in June, Wilmington Trust requested Liegeois appoint a new receiver to sell the hotel. The financiers claimed AB Hospitalities' did not have enough assets to pay its expenses, taxes and the $8.2 million loan balance.
In July, Liegeois appointed Michael Polsky to serve as receiver of the property and business under Chapter 128 of state law, which serves as an alternative to bankruptcy protection for businesses struggling to pay creditors.
On Aug. 5, Polsky filed a notice of receivership and set a Nov. 4 deadline for AB Hospitalities' creditors to file claims with Judge Liegeois’ office.
Built in 2009, the 105-room, four-story Aloft features a daily room rate of $108, per the auction listing. The hotel amenities include a business center, fitness center, swimming pool, hot tub, patio and bar.
Brown County property records indicate the hotel’s 2.5-acre parcel has an assessed value of $7.7 million and a fair market value of $8.2 million.
The hotel sale includes the new license agreement with Marriott International Inc. for the Aloft brand but does not include any debt or property management contract.
There are more than 160 Aloft-branded hotels in North America and more than 210 worldwide. The chain features modern design and technology-focused amenities in order to appeal to business travelers.
Contact Jeff Bollier at (920) 431-8387 or jbollier@gannett.com. Follow him on Twitter at @JeffBollier.
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This article originally appeared on Green Bay Press-Gazette: Green Bay area hotel up for auction with $2.5 million starting bid
