Hotel Aspen sued for late loan payments |

Hotel Aspen sued for late loan payments

Aspens Vectra Bank filed suit against the Hotel Aspen on Wednesday, claiming the hotel has defaulted numerous times on two loans worth more than $3 million.According to the lawsuit filed in Pitkin County District Court, Vectra Bank purchased the Aspen Hotel Associates Loan consisting of a $3.2 million deed of trust for 35 Hotel Aspen units in late 2000. The bank claims the hotel began to default on the loan beginning in January 2001.The Aspen Hotel Associates monthly loan payments to Vectra Bank were allegedly made late 35 times during a 35-month period.Starting in June of 2003 to December of 2003 (seven consecutive months) the Aspen Hotel Associates late payments have consistently been late by approximately one month or more, the suit states. The bank claims that as of the filing of the lawsuit, the hotel had not made its February 2004 loan payment.The defendants, Aspen Hotel Partners Limited Partnership, also entered into a loan agreement with Vectra Bank on April 18, 2002, for $249,000, the suit claims. This second loan was for property in Aspen referred to as employee units 100 and 101 in the Hotel Aspen, located at 110 W. Main St.The lawsuit claims the hotel defaulted on the $249,000 loan beginning in January 2003, and has made at least nine substantially delinquent payments over the course of 20 months … moreover their February 2004 monthly payment was only a partial monthly loan payment, the suit says.Vectra Bank is requesting a judge appoint a receiver to take control of the Hotel Aspen property 35 hotel units and two employee units as a result of the delinquent loan payments. The bank also filed a motion for the receiver to be appointed ex parte, which means without the hotel receiving prior notice.The bank is also asking the court to award costs, expert witness and attorneys fees, and any other relief the court deems proper. Vectra Bank is represented by Aspen-based Garfield & Hecht.[Naomi Havlens e-mail address is]

Support Local Journalism

Support Local Journalism

Readers around Aspen and Snowmass Village make the Aspen Times’ work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Each donation will be used exclusively for the development and creation of increased news coverage.

For tax deductible donations, click here.

Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User