The Holiday Inn Express in Washington D.C.’s Mount Vernon Triangle is at risk of foreclosure. According to the Washington Business Journal, the hotel’s owner, Birchington LLC, is facing significant debt issues.
An auction by Alex Cooper Auctioneers on February 8th claims that Birchington defaulted on a $49 million loan. The amount has now increased to nearly $80 million due to late fees and interest. The lender behind the auction is SSCHOF II Washington DC LLC.
Birchington, which has ties to Habte Sequar, previously filed for Chapter 11 bankruptcy protection in February of 2023 after a failed loan refinancing attempt. Although they reached a debt restructuring deal in May and had their bankruptcy case dismissed in June, challenges continued for Birchington.
Among these challenges are mounting claims from Kinsley Construction for $5.3 million related to hotel construction and Pawnee Leasing Corp., seeking repayment of an audio system worth $17,300.
The potential foreclosure adds uncertainty for this Holiday Inn Express located at 317 K St NW as it faces financial struggles amidst ongoing legal battles with creditors.
