A Comfort Inn in Tampa, Florida, was recently added to a growing list of Chapter 11 bankruptcy filings by a family-owned business. In this most recent filing, the hotel lists assets between $1 million and $10 million and liabilities between $10 million and $50 million.
When looking at this recent Chapter 11 bankruptcy filing, the company, Roberts Cos., is run by two brothers. In total, the company owns 11 hotels nationwide. It appears times have also been tough for many of the hotels, as four others have filed for bankruptcy in the past five months.
In addition to the company’s real estate holdings financially struggling, it’s also been reported that their broadcasting business is also having some financial difficulties.
Aside from the bankruptcy filing, the company was handed down a multi-million dollar lawsuit by the Bank of America last month. The bank claims that Roberts Cos. defaulted on a multi-million dollar loan that was intended for hotel renovations.
In general, when looking at this recent filing, it’s important to remember that since the recession, many businesses that thrived on vacations and travel have been struggling as more Americans tighten up their wallets. Now, instead of taking that vacation to Tampa for a week, many are forgoing time off all together, or are just going with the cheaper alternative of taking a vacation at home.
This in turn means less people checking into hotels, which can lead to increasing amounts of debt and a business needing to file for bankruptcy in order to reorganize.
Source: Stltoday.com, “Roberts’ Tampa hotel files for bankruptcy,” Lisa Brown, May 7, 2012