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Hotel checks into foreclosure process

David Larter April 26, 2013 3
The Hyatt Place at 4401 South Laburnum Ave. (Photo by David Larter)

The Hyatt Place at 4401 South Laburnum Ave. (Photo by David Larter)

Four years after the paint dried, a Richmond airport hotel is headed to foreclosure.

Hyatt Place, at 4401 South Laburnum Ave., is scheduled to be auctioned May 10 at 1 p.m. on the steps of the Henrico County courthouse.

The nearly 100,000-square-foot hotel was built in 2009. It sits on 3.2 acres.

The hotel’s owner, Laburnum Hotel Partners LLC, defaulted on a $16.6 million loan, according to Jonathan Hauser, an attorney with Troutman Sanders who is handling the foreclosure auction.

The 127-room hotel is managed by Chesapeake-based LTD Hospitality Group, which shares an address with the Laburnum Hotel Partners. LTD managing principal Malay Thakkar is listed on the deed for the property.

Calls to Thakkar and LTD principal Neel Desai were not returned by press time.

Hauser would not say how much of the loan balance remained. North Carolina-based Southern Bank & Trust holds the loan on the property, he said.

The original lender on the property was the former Bank of the Commonwealth, according to Henrico County records. The Norfolk bank was closed in late 2011 by the FDIC, and its assets were sold to Southern Bank.

Bank of the Commonwealth’s former chief executive and three of its executives are on trial in federal court in Norfolk, facing charges of conspiracy and bank fraud.

The Hyatt Place property is the second local hotel managed by LTD that has gone into foreclosure in the past year.

In April 2012, the lender on the Aloft Hotel in West Broad Village filed suit against the hotel’s owner in attempt to recoup an unpaid $19 million loan.

Shamin Hotels, one of the largest hotel operators in the area, eventually bought the property from the bank for $13.5 million.

A report from the Virginian-Pilot in late 2010 found that LTD was overleveraged and in default on several of its Hampton Roads hotel properties. The company, according to the report, grew rapidly in the years leading up to the recession. The subsequent decline in property values left it underwater of some of its hotels.

LTD also manages the Hilton Garden Inn Innsbrook at 4050 Cox Road in Glen Allen.

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3 Comments »

  1. Jay April 26, 2013 at 8:22 am - Reply

    I think Shamin just found it’s next property!

  2. Jay shah April 26, 2013 at 9:44 am - Reply

    That comment was not posted by me.

  3. me May 12, 2013 at 1:23 am - Reply

    so who bought it?

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