PORTLAND, Ore. — Three prominent Portland hotels are facing foreclosure, financial filings show, yet more fallout that highlights the struggles of the hospitality industry within the urban core.
Willamette Week first reported on the expected foreclosures at Dossier, The Duniway and the Hilton Portland Downtown, citing property and court records. But Provenance said it was in the process of bringing its loan current.
Financial filings reviewed by the Business Journal confirm that the 205-room Dossier, formerly a Westin, at 750 S.W. Alder St. had a lender that was dual-tracking "foreclosure and appointment of receiver if deemed necessary."
Dossier is part of the Provenance Hotels brand of lodgings, which sold to Benchmark Pyramid earlier this year.
In a statement to the Business Journal on Thursday, a Provenance spokesperson said, "We are pleased to announce that Provenance has reached an agreement with LNR Partners on loan modification terms and is in the process of closing the deal, which will bring the loan current. There will be no foreclosure of the property.
"We have been attempting to resolve this issue with LNR Partners for two years and have always had the funding to bring the loan current. We look forward to putting this matter behind us.
"All of Provenance's other properties are in good financial standing after satisfactorily resolving issues with all other lenders, and our transaction with Benchmark Pyramid is proceeding as planned."
A Benchmark Pyramid spokesperson declined to comment.
Meanwhile, the Duniway (545 S.W. Taylor St.) and the Hilton (921 S.W. Sixth Ave.), right by each other downtown, are part of one portfolio. That loan moved to special servicing as of June 2020 because of monetary default, with the hotels used as collateral, documents show.
The hotels were inspected in July 2021 and were "found to be in good condition at that time," according to the filings.
"The special servicer is dual-tracking a foreclosure, which is expected by the end of September 2022, while remaining open to modification discussions," August filings state.
In an emailed statement Thursday, a Hilton spokesperson said, "Hilton Portland Downtown and The Duniway, a Hilton Hotel remain open and operational. Hilton continues to manage the properties under the Hilton Hotels & Resorts flag, and we remain fully committed to welcoming guests with the quality service and signature hospitality experience they have come to enjoy."
Read more about the foreclosure situation at the Portland Business Journal.
Correction/Clarification: An earlier version of this story stated the hotel properties would go up for sale in September and November. It is unclear if those sales are going through as of this time.
