Shilo Inn files for bankruptcy
Published 4:00 am Friday, March 29, 2002
After saying on Friday that it was on solid financial ground, The Shilo Inn Suites in Bend joined the ranks of 26 other Shilo operations in eight states which have filed for Chapter 11 bankruptcy protection.
Citing a 9 percent dip in revenues after Sept. 11, which contributed to the hotel chain’s estimated total debt of $100 million, Shilo founder Mark Hemstreet said on Wednesday that he intends to keep the hotels open, though he may sell a handful, according to news reports. Hemstreet has not yet announced which hotels will be sold.
In a story published in The Bulletin last week, Bend Shilo manager Donnis Shirley said, ”We haven’t laid anyone off, our rates for this time of year are up and occupancy was down a little after Sept. 11, now is about the same as last year.
”We don’t see any problems for Bend,” she said.
The Bend Shilo Suites Hotel, located along the Deschutes River, opened in December 1992, and has 151 rooms, banquet facilities and a restaurant.
Bend Shilo managers Donnis Shirley and her husband, Mike, are on vacation and could not be reached for comment. Phone calls to Shilo’s corporate office in Portland were not returned on Thursday.
The 27 Shilo corporations entered bankruptcy after they were sued by lenders, who claimed that the hotel operations were in default on their mortgage loans, The Oregonian reported.
Shilo’s attempts to negotiate with the lenders to avoid litigation broke down, said Charles Markley, a Portland attorney working for Shilo. Nineteen of Hemstreet’s 46 Shilo Inns will not seek bankruptcy protection. Shilo was able to negotiate an accord with lenders, avoiding litigation for the 19, he said.