Shilo Inn in Seaside goes up for sale
Published 4:21 pm Monday, November 13, 2023
- The Shilo Inn in Seaside has struggled with tax issues.
The Shilo Inn Seaside Oceanfront is expected to be sold, one of several hotels the chain is selling to help pay off debts.
Shilo Management Corp. and the company’s owner, Mark Hemstreet, were ordered last year to repay $3.3 million in debt to California-based Cathay Bank, according to Multnomah County Circuit Court filings.
A court-appointed receiver will sell several Shilo hotels in Oregon, Nevada, Arizona and Texas, including the five-story, 113-room hotel in Seaside.
Call for offers for the Seaside hotel are due by Nov. 22, according to a listing by Amber Hotel Co., a commercial real estate agency based in Agoura Hills, California, hired to market and sell the property.
Shilo Management Corp. and Hemstreet, through his attorney, confirmed the property is listed for sale, but would not provide any additional information.
The receiver will review offers and work to maximize the value of the hotel for the benefit of creditors of the receivership estate, according to court filings. The final sale must be approved by the court.
The hotel earned $1.9 million last year, according to the real estate listing.
The hotel chain has been facing financial turmoil for years and has a history of defaulting on taxes.
Willamette Week reported in February that Hemstreet owes the federal government more than $20 million for unpaid personal income taxes and employee withholdings.
A delinquent taxpayer list published in July by the Oregon Department of Revenue showed that Hemstreet owes the state over $3.5 million in personal income and withholding tax.
Earlier this year, a Clatsop County Circuit Court judge ruled that the Shilo Inn in Seaside must pay Seaside nearly $240,000 for three months of lodging taxes and penalties.
The city sued for almost $146,000 in 2016. In 2019, Shilo Inn faced the city in court twice, once for $58,000 and once for $200,000. The Warrenton and Portland hotel locations have also been sued for outstanding taxes.