Pere Marquette and Courtyard Hotels in downtown Peoria are in foreclosure. The hotel properties were placed in receivership Wednesday by the emergency order of Judge Kate Gorman.
Efforts to refinance fell through Tuesday when the finance company Yam withdrew from negotiations. The hotel will eventually be sold at sheriff’s auction. That is a fairly standard practice in such foreclosures.
But Peoria City Manager Patrick Urich says the hotel will stay open and operate under receivership for now. “The receiver doesn’t mean that the hotel shuts down. What the receiver means is that they’re going to continue to run and operate the hotel until such time as the hotel can be sold in foreclosure.”
The hotel is expected to retain the Marriott name, at least until it's sold. Local realtor Bob Howard of ReMax Commercial is the appointed receiver. He will maintain control and oversight of the property until it’s sold. The city manager says the goal at this point is to stabilize finances, get control of operations and assess the property value prior to its sale.
The city of Peoria holds a second mortgage on a $7 million loan to hotel owner Gary Matthews. If the hotel is not sold for at least $42 million, the city may not recoup some or all of the loan.