Nov. 08–The Crowne Plaza Southern Hills has entered foreclosure and will be put up for auction.
The 11-story, 286-room hotel at 7900 S. Lewis Ave., which remains in operation, has a tentative auction date of Dec. 10 during the weekly Tulsa County sheriff real estate auction. Its appraised value is listed at $12 million.
The foreclosure was the result of a lawsuit filed by State Bank of Texas earlier this year against Nevada-based Brisam Tulsa LLC, Ashok Dhabuwala and Metro Eight Hotel LLC. The claim alleged nonpayment of $6.3 million owed on loans.
The hotel is owned by New York City-based McSam Hotels and operated by Packard Hospitality of San Diego.
Calls to the hotel requesting a comment on the foreclosure were directed to Packard Hospitality, which didn’t respond to requests.
Tulsa County District Judge E. Mark Barcus ruled in favor of State Bank of Texas recently. Oklahoma law dictates that all foreclosed property be auctioned off, with the proceeds going to the plaintiff.
The lawsuit alleged that Brisam Tulsa received two loans, one in November 2005 for $5 million and one in July 2007 for $3.85 million, that were both guaranteed by Dhabuwala and Metro Eight Hotel.
Additionally, the city of Tulsa filed a lien in November 2012 for $85,772 in unpaid hotel taxes, and Pendergraph Systems Inc. filed a mechanic’s lien Jan. 30 for $28,463, according to the lawsuit.
The hotel has received multiple renovations in recent years. A $7 million update when the property was branded Hilton Tulsa Southern Hills introduced new luxury suites, a remodeled restaurant and bar, new carpets and other details.
When the hotel switched to the Crowne Plaza brand in 2012, it received more than $1 million in new carpeting, bedding and wireless systems, and a renovation of the meeting space, guest rooms and lobby.
Packard Hospitality oversees 24 hotels in 10 states, though Crowne Plaza Southern Hills is the sole Oklahoma property in its portfolio.
Robert Evatt 918-581-8447
robert.evatt@tulsaworld.com
