HIGH POINT — A representative for the owners of the vacant building that was the city’s largest hotel reports that the group is considering redevelopment options.
A real estate sign on the former Red Lion hotel downtown advertises 50,000 square feet of showroom space available for fall 2022 inside the 135 S. Main St. property.
Tim Moore, who’s affiliated with an entity called HDDA, which owns the hotel building, said showrooms are one use being explored, but there are a lot of ideas under consideration and no decisions have been made.
The land on which the hotel is located is separately owned and is in bankruptcy court.
“There are a lot of complexities involved,” said Moore, whose title is managing principal at NT Capital LLC in Dallas. “We’re actively working through a business plan and hope to be able to announce a definitive redevelopment plan within a couple of months.”
The 252-room hotel closed in June 2020, purportedly for renovations. It switched names to the Craftsman Plaza during the closure.
It opened in 1983 as the Radisson, has had a series of owners and different names and has historically struggled outside of High Point Market weeks each year.
The hotel sits on 1.5 acres that are owned by a limited liability company that filed for bankruptcy protection in 2019, according to court filings.
As of Friday, the case was still pending in U.S. Bankruptcy Court for the Middle District of Florida.
HDDA owns the building and leases the land from the landowner, Consolidated Land Holdings LLC.
According to court filings, Joseph Gill Gillespie III formed Consolidated Land Holdings of Ormond Beach, Florida, to acquire, own and operate hotels in High Point and six other locations: St. Louis; Cromwell, Connecticut; Cheyenne, Wyoming; Billings, Montana; Appleton, Wisconsin; and Albany, New York.
The company financially struggled starting in 2017, when a dispute arose with its largest lender, causing delays in necessary renovation and modernization projects at its hotels, according to an August order by U.S. Bankruptcy Judge Karen S. Jennemann.
The company ultimately defaulted on its obligations and filed Chapter 11 bankruptcy in July 2019, the order stated.
Wells Fargo is Consolidated Land Holdings’ only secured lender and largest creditor, with a secured claim of at least $61.5 million, the order stated.
On Tuesday, the attorney for Gillespie’s company, Scott Shuker of Orlando, Florida, filed a motion asking a judge to dismiss Consolidated Land Holdings from the bankruptcy case.
Shuker wrote in his motion that his clients have conferred with their secured creditors and “learned there is no opposition to dismissal” of the case.
Neither Gillespie nor Shuker could be reached for comment.
firstname.lastname@example.org | 336-888-3531