IBJNews

Local hotelier files for bankruptcy on 7 properties

Back to TopCommentsE-mailPrintBookmark and Share

An Indianapolis-based hotelier reeling from the recession has filed for bankruptcy on seven properties across the nation to protect them from foreclosure.

On Nov. 4, seven affiliates of Indianapolis-based Sun Development & Management Corp. representing the properties filed petitions for Chapter 11 bankruptcy reorganization in the southern district of Indiana. Sun Chairman and CEO Brahat Patel is listed as the general partner or managing member of all seven affiliates.

Chapter 11 bankruptcy allows a debtor time to reorganize its business affairs and assets.

Court documents identify The National Republic Bank of Chicago as a secured creditor with mortgages on all seven properties. It is owed about $120 million in total. In the bankruptcy filings, the affiliates dispute the amounts.

The properties in question are the Springhill Suites hotels in Rosenberg, Texas, and Tampa, Fla.; the Embassy Suites hotel in Ontario, Calif.; the Hampton Inn & Suites hotel in Riverside, Calif.; the Holiday Inn hotel in Titusville, Fla.; the Fairfield Inn & Suites hotel in Conroe, Texas; and the Hilton Garden Inn hotel in Mt. Laurel, N.J.

In court filings, the Sun affiliates weave a story about how the recession crippled the hospitality industry. The affiliates were in the process of building several hotels at the time, and eventually could not afford to both continue paying construction costs and pay the interest on the loans.

In October, the bank filed to foreclose on five of the properties, according to court filings.

The companies decided their best course of action was to file for Chapter 11 reorganization, giving them the best opportunity to restructure or refinance the loans and stabilize the seven properties.

“We made a restructuring proposal to our lender, The National Republic Bank of Chicago, but it refused to negotiate,” Patel said in a press release.

A representative for the bank declined to comment on the cases.

Patel and entities under his control own about three dozen hotels throughout the U.S., including a Comfort Inn and Holiday Inn Express in Indianapolis, a Hampton Inn & Suites and Holiday Inn Express in Brownsburg, and a Holiday Inn Express in Kokomo.

The hotels will continue to operate during the Chapter 11 process.

ADVERTISEMENT

  • Corp. for less than a month
    Sun Development & Management Corporation filed as a Statement & Designation By Foreign Corporation in the State of California on Friday, April 04, 2014 and is less than one month old, according to public records filed with California Secretary of State. The filing is currently active as of the last data refresh which occured on Sunday, April 27, 2014. A corporate filing is called a foreign filing when an existing corporate entity files in a state other than the state they originally filed in. This does not necessarily mean that they are from outside the United States. Key People Nayna Patel served as the Chairman and has interests in other corporate entities including Ontario Lodging Associates LLC located in Indianapolis, IN . Nayna's past corporate affiliations include Tampa Palms Lodging Associates, L.L.C., Palmdale Lodging Associates LLC . Bharat Patel was the President of Sun Development & Management Corporation. Bharat's additional corporate interests include Rosenburg Lodging Associates, Llp, Conroe Lodging Associates, Llp and three more corporations. Bharat's past corporate affiliations include Highland Oaks Lodging Associates, L.L.C., Tampa Palms Lodging Associates, L.L.C. and two others. The Treasurer of Sun Development & Management Corporation was Harshad Patel. . Harshad has other corporate interests including Ontario Lodging Associates LLC located in Indianapolis, IN . Harshad's past corporate affiliations include Tampa Palms Lodging Associates, L.L.C., Palmdale Lodging Associates LLC . The registered agent for the company is Corporation Service Company Which Will DO Business In California As Csc - Lawyers Incorporating Service. Also known as a statutory or resident agent, the registered agent is responsible for receiving legal notifications regarding court summons, lawsuits, and other legal actions involving the corporate entity.
  • Money Laundering & Suites
    It's funny how Sun is filing for bankruptcy for seven of its properties, when just three months ago they were listed in the article below as interested in buying another hotel in New Jersey. http://www.nj.com/mercer/index.ssf/2013/08/we_will_have_brighter_days_in_trenton_officials_reflect_on_bankruptcy_of_city-owned_hotel.html
  • Scam
    This hotel owner and the bank both screwed over us all. The bank is owned by Hiren Patel, he issues bad loans to Sun Hotel Company and they planned this all out. Nothing but the rich getting rich and screwing us all normal working people.
  • Sun Development HQ
    The company is located right here in Indianapolis.
  • Where & who?
    Where was the Chapter 11 filed, and who represents the debtors? Although the story implies Sun Development is based here, there is no information about whether it is an Indiana entity or whether it filed in the Southern District of Indiana.

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

    2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

    3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

    4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

    5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

    ADVERTISEMENT