The Holiday Inn Baltimore-Inner Harbor is in receivership after failing to make franchise payments, according to documents filed in Baltimore City Circuit Court.
The 365-room hotel at 301 W. Lombard St. was assigned a receiver in January after being warned in September that it was in default, documents show. The filings indicate the Holiday Inn has suffered from low occupancy rates — 24 percent in February — and is also in need of costly repairs.
The details come from a civil action filed Jan. 8 against Harry G. Pappas & Sons, LLC, the hotel’s owner, by Wilmington Trust National Association, which holds the loan on behalf of a group of creditors. According to the court filings, Harry G. Pappas & Sons took out a $39.5 million loan for the hotel in November 2015.
The suit says Harry G. Pappas & Sons has failed to make payments and maintain quality standards under its franchise agreement with Holiday Hospitality Franchising, a subsidiary of InterContinental Hotels Group PLC, which owns the Holiday Inn brand. The documents say Holiday Hospitality Franchising has warned of its intent to terminate the franchise agreement if the default continues, which would mean an immediate shutdown for the hotel.