BERKELEY — A plan to sell a Berkeley hotel has fallen through, raising the specter that its loan could be foreclosed with ownership of the property going back to its lender.
Earlier this year, the owner of the 113-room University Inn & Suites at 920 University Ave. stated that a buyer had emerged to purchase the hotel, a deal that would head off foreclosure proceedings.
The sales plan has dissolved, hotel owner Kubera Hotel Properties stated in a court filing on Nov. 4. The ownership group filed for bankruptcy in an attempt to reorganize its finances.
The hotel had been slated to be sold for $17 million, a proposed transaction that a U.S. Bankruptcy Court judge appr…
BERKELEY — A plan to sell a Berkeley hotel has fallen through, raising the specter that its loan could be foreclosed with ownership of the property going back to its lender.
Earlier this year, the owner of the 113-room University Inn & Suites at 920 University Ave. stated that a buyer had emerged to purchase the hotel, a deal that would head off foreclosure proceedings.
The sales plan has dissolved, hotel owner Kubera Hotel Properties stated in a court filing on Nov. 4. The ownership group filed for bankruptcy in an attempt to reorganize its finances.
The hotel had been slated to be sold for $17 million, a proposed transaction that a U.S. Bankruptcy Court judge approved. A Saratoga-based group operating as Goldfin Ventures had agreed to buy it.
“Unfortunately, the buyer cancelled its offer,” an attorney for the hotel’s principal owner, a group led by Pradeep Khatri, stated in the Nov. 6 filing.
The pandemic hurt the hotel, according to a declaration that Khatri filed with the bankruptcy court in August.
“Like many businesses, COVID was devastating,” Khatri stated in his filing. “The hotel struggled through the COVID pandemic and was not operating profitably.”
In September 2024, the hotel defaulted on its mortgage payments to Wilmington Trust, the current holder of the mortgage.
“The debtor has been attempting to sell the hotel for a number of months and received favorable offers, but no sales closed,” Khatri declared in court records. “The debtor has also sought to refinance its existing secured debt without success.”
The University Inn & Suites hotel is still fighting financial difficulties, court records show.
“Kubera Hotel Properties is still operating at a loss with cash infusions by Pradeep Khatri,” the hotel owner’s attorney stated in a court filing.
Khatri still hasn’t given up efforts to sell the hotel, according to a court filing.
“Backup offers are being considered, and the hotel is being toured by potential buyers currently,” the property owner’s attorney stated in a court filing. “Kubera Hotel Properties will accept a new offer as soon as possible and file a motion with the court for approval.”
Multiple reports have emerged that suggest owners of commercial real estate have encountered uneven success in refinancing their existing loans because the currently high interest rates are unfavorable for new financing.
Hotel development has slowed in both the Bay Area and throughout California, according to a report released by Atlas Hospitality Group, which tracks the California lodging market.
An estimated 1,453 hotel rooms were under construction in the region during the first half of 2025, which represented a plunge of 46.7% from the 2,725 hotel rooms that were being built in the first half of 2024, the report shows.