An online auction has been scheduled for a now vacant downtown Peoria hotel.
Auction.com will conduct a two-day online auction, beginning July 20, in an attempt to sell the former Four Points by Sheraton. The suggested opening bid is $3.5-million.
The hotel, and its 319 rooms, had been closed for nearly a year for renovations last October when the chairman and CEO of the group that formerly owned the property was arrested in Florida.
Nikesh Patel of Alena Hospitality is accused of selling $150-million in fake loans. Patel, who faces $537.5-million in damages, was forced to sell his hotel porfolio of five properties, including the Peoria location, and other possessions.
Shortly after Patel’s arrest, South Florida real estate firm Continental Properties signed a letter of intent to buy the Peoria property and the rest of Patel’s hotel portfolio. However, Continental Properties decided not to go through with the planned May closing of the sale.
The online description of the property explains Alena Hospitality undertook, but only partially completed, a renovation of the hotel. It is estimated the rehab is about 45 percent complete and nearly $8.5-million had been spent. The description also notes although Alena initially entered into a franchise agreement with Four Points by Sheraton, the affiliation agreement was terminated by consent of the parties.
The online description also reads, “Of note, the City of Peoria supports reopening the hotel, as the property will provide desperately needed available guestrooms that will allow the Peoria Convention and Visitors Bureau to remain competitive when trying to attract conventions to downtown Peoria.”
At the time of Patel’s arrest, PACVB President and CEO Don Welch told 1470 & 1003.3 WMBD his clients were “nervous” about the future of the hotel.
The hotel property was featured in a two-page ad for Auction.com in Wednesday’s Wall Street Journal.
More information about the property and the auction can been found here.