The owner of Lincoln's Cornhusker Marriott has lost ownership of the hotel after defaulting on a $3.5 million loan.
The lender, an affiliate of a group of Philadelphia-based private equity funds, acquired the ownership interest from a company led by Atul Bisaria, who had bought the landmark hotel in 2004. A foreclosure sale was held Friday.
The lender, Cornhusker PREH LLC, said in a press release announcing the purchase that it will now begin the process of restoring the Cornhusker's "status as the leading hotel in Lincoln."
The Cornhusker remains one of downtown Lincoln's anchor hotels and is a frequent convention site.
"Our intention is to ensure a seamless transition of ownership, and that the hotel continues to be well run and positioned to take full advantage of its place in the market," the statement said.
Larry Bundy, the Cornhusker's general manager, said the hotel is conducting business as usual.
"We're just moving forward," he said.
In addition to the financial trouble with the lender, Bisaria had breached his franchise agreement with Marriott International, according to a letter from the hotel company. In December, Marriott notified Bisaria that it would terminate its franchise with the Cornhusker as of this Sunday.
It's unclear how Friday's sale affects that situation.
One of Bisaria's companies, Shubh Hotels Lincoln Mezzanine LLC, filed for bankruptcy in Florida in January.
Bisaria had reached an agreement to stave off the foreclosure sale if he made sufficient payments to his lender and worked out an agreement with Marriott. He apparently didn't meet those conditions.
Susan Lasky, Bisaria's bankruptcy lawyer in Florida, said earlier this week that he was working hard to save his hotel.
"He's a really hardworking, good businessman who just got caught in a terrible place in this economy," she said.
Contact the writer:
402-444-1128, jeff.robb@owh.com
twitter.com/jeffreyrobb
Copyright ©2012 Omaha World-Herald®. All rights reserved. This material may not be published, broadcast, rewritten, displayed or redistributed for any purpose without permission from the Omaha World-Herald.
