The foreclosure of the Dossier Hotel in downtown Portland is postponed

Good news for the owners of the Dossier Hotel, as the foreclosure auction for the downtown Portland hotel has been postponed until further notice, giving the owners more time to renegotiate the terms of their loan with the lender.

But this is not the first time the downtown Portland hotel has faced financial trouble, as the Dossier, owned by a partnership that includes Provenance Hotels, a boutique chain founded by Gordon Sondland, has previously faced foreclosure due to late loan payments.

The financial crisis that the Dossier Hotel is currently experiencing stems from a 2015 loan that, according to sources, had an outstanding debt of nearly $61 million as of months ago.

To avoid foreclosure, the owner, a firm listed as Portland Hotel LLC, reportedly must pay nearly $11 million to get current. The auction was initially scheduled for Oct. 1, but was delayed after a request from the lender. And because of this, spokeswoman Karin Freestad announced the postponement in front of the Multnomah County Courthouse.

The Dossier Hotel’s struggles are part of a broader trend in downtown Portland, where the hotel industry has been hit hard by the lingering effects of the COVID-19 pandemic, which famously caused a sharp decline in tourism and leisure travel, leading to a wave of foreclosures and the bankruptcy of a large number of hotels. 

But now, as the pandemic fades, signs of recovery are beginning to appear, according to real estate analytics firm CoStar, with last summer being the busiest in five years for downtown Portland hotels, with occupancy rates topping 70%.

However, the future of the Dossier remains uncertain as it joins the list of potential foreclosures facing the city of Portland today.

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By Elías DaSilva | 03 de diciembre de 2024