PEORIA, Ill. (AP) — A bankruptcy auction of two Peoria hotels was called off after the effort attracted no bidders.
As a result of Tuesday’s action, the Marriott Pere Marquette and the adjoining Courtyard by Marriott will be acquired by the union pension fund that provided the hotels’ financing.
The Journal Star in Peoria reports the INDURE Build-to-Core Fund agreed to a $39 million price for the hotels in March. But former owners Gary Matthews and his partners declared bankruptcy before an auction could be held. The U.S. Bankruptcy Court set up Tuesday’s auction.
The money INDURE will pay includes all back taxes. The city of Peoria, which invested $7 million in the project, isn’t likely to recoup its investment. City officials had expressed the hope bidding for the hotels would top $40 million so that the city could get some payback.
INDURE will take over the hotels after a Friday hearing.
Information from: Journal Star, http://pjstar.com