CHARLESTON – Sales have been scheduled for two hotels in Clarksburg and Elkins after they defaulted on their loans.
The hotels are owned by Mountain West Hospitality, which is owned by William Abruzzino. Abruzzino also owns Mountain Blue Hotel Group, which is also involved in a lawsuit alleging default for its Morgantown hotel.
Hampton Inn in Elkins is scheduled for sale at noon on Nov. 30. The Hilton Garden Inn in Clarksburg is scheduled for sale at 3:30 that same day.
Mountain West objected to the sale of the hotels and filed a motion to halt the sale in the U.S. District Court for the Northern District of West Virginia.
The lawsuit was filed against Mountain West on May 10 by Deutsche Bank Trust Company, alleging it defaulted on a $17 million loan for the two hotels.
Abruzzino is also involved with Tara Retail Group, which owns the Crossings Mall in Elkview and was involved in bankruptcy proceedings earlier this year.
Mountain West claims that the 2012 appraisals of the properties show their value to be $21.5 million for the Clarksburg hotel and $8.7 million for the Elkins hotel.
The hotel group claims if the hotels are sold to settle the $17 million debt, they will be out $13 million in equity.
On Nov. 27, District Judge Irene Keeley filed a order denying in part the motion for temporary restraining order and temporary and permanent injunction. She scheduled an evidentiary hearing for Nov. 28 in Clarksburg.
“The court recognizes that such a hearing will provide Deutsche Bank a limited period of time in which to prepare its opposition to Mountain West’s motion,” Keeley wrote. “Under the circumstances of this case, however, the court finds that Deutsche Bank will have a ‘reasonable opportunity’ for such preparations.”
U.S. District Court for the Northern District of West Virginia case number: 1:17-cv-00075
