Shilo Inn Bend is one 3 Oregon locations which abruptly closed due to bankruptcy
Barney Lerten
BEND, Ore. (KTVZ) — Bend’s Shilo Inn is now one of three Oregon hotels owned by the chain to close amid bankruptcy, the latest sign of deepening financial woes for the long-running regional brand.
Currently, three Shilo Inns locations in Oregon are confirmed to be bankrupt: Bend, Warrenton and Newport. Federal court documents indicate that a Chapter Seven bankruptcy hearing for the Bend and Warrenton locations is set for next week. Under Chapter Seven, the company is unable to resolve its financial difficulties, which could lead to the liquidation of assets to repay creditors.
The bankruptcy documents, which you can find below, indicate that these Shilo Inns have been in and out of bankruptcy since at least 2019.
Shilo Inn Bend LLC bankruptcy Chapter 7Download
Shilo Inn Bend LLC bankruptcy 2021Download
An employee of the 151-room hotel told KTVZ he was notified of Monday’s closure in a text from his manager. He also said paychecks have been bouncing for the past three months.
A sign on the locked front door of the hotel on O.B. Riley Road apologized for the inconvenience, but said that “due to unexpected circumstances, we are temporarily closed until further notice.”
It advised would-be guests to contact the neighboring Riverhouse Lodge for accommodations.
A visit to the hotel website’s booking page on Monday afternoon did not allow visitors to make reservations.
Crystal Knowles, the hotel’s assistant general manager, told KTVZ News the hotel is not permanently closed but is undergoing bankruptcy proceedings.
Shilo Inns, founded in 1974 by Mark Hemstreet, reports having 12 hotels around the West. It bought Bend’s former Touch of Class Motor Inn in 1992.
It’s not the first financial difficulties faced by the hotel. It was scheduled for auction in the fall of 2019 after defaulting on about $9 million in debt. But an attorney for the firm told The Bulletin at the time that they could pay off the debt any time before the sale.
Deschutes County property tax records on Monday indicated Shilo Inn Bend LLC is still owned by the hotel chain’s parent firm, Shilo Inns Hotels of Vancouver, Wash. The 7.52-acre commercial property has a real market value of $15.5 million.
Shilo Inns has closed or sold several hotels in recent years due to financial problems or other issues.