Efforts to refinance the Pere Marquette and Courtyard Hotels in downtown Peoria have failed. The finance company Yam withdrew from negotiations Tuesday. The hotel will likely go into foreclosure and eventually be sold. Peoria City Manager Patrick Urich says the hotel will stay open and operate under receivership for now.
"The receiver doesn’t mean that the hotel shuts down. What the receiver means is that they’re going to continue to run and operate the hotel until such time as the hotel can be sold in foreclosure." Urich says.
The hotel will retain the Marriott name. A foreclosure proceeding will be in circuit court today. An earlier circuit court proceeding called for a foreclosure award of $34 million if efforts to refinance failed. That amount would reimburse first mortgage holder Endure Build-to-Core. The city holds a second mortgage for a $7 million loan to Matthews. If the hotel is not sold for at least $42 million, the city may not recoup some or all of the loan.