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Downtown Portland hotels facing foreclosure, auction

Editor’s note: The owners of The Dossier hotel announced on Thursday, Sept. 8, that an agreement was reached with LNR Partners on the loan modification terms, “resulting in no foreclosure of the property,” the hotel owners said in a statement on Thursday afternoon. More in the story below.

PORTLAND, Ore. (KOIN) — Two Portland hotels are in foreclosure proceedings and could go up for auction, according to documents.

The hotels, which are all downtown, are the Hilton’s flagship at 921 SW 6th, along with The Duniway on SW Taylor, which are owned by the same company.

The foreclosure news was first reported by Willamette Week.

The Hilton and Duniway hotels were owned by the same company, THI VI Portland LLC, according to documents.

“Hilton Portland Downtown and The Duniway, a Hilton Hotel remain open and operational. Hilton continues to manage the properties under the Hilton Hotels & Resorts flag, and we remain fully committed to welcoming guests with the quality service and signature hospitality experience they have come to enjoy,” a Hilton spokesperson told KOIN 6 News.

The documents indicate the Hilton and Duniway’s public auction will be on Sept. 13.

It comes as more hotels raise the alarm over a two-fold issue in downtown Portland in a Travel Portland report, which cited a lack of office workers and corporate clients needing rooms and conference spaces along with the rise in vandalism, crime and homeless camps downtown throughout the pandemic.

The Dossier, a hotel on SW Alder, also had foreclosure proceeding documents; however, on Thursday, Sept. 8, the hotels owners and lenders announced they reached an agreement.

“We are pleased to announce that Provenance has reached an agreement with LNR Partners on loan modification terms and is in the process of closing the deal, which will bring the loan current. There will be no foreclosure of the property.

“We have been attempting to resolve this issue with LNR Partners for two years and have always had the funding to bring the loan current. We look forward to putting this matter behind us.

“All of Provenance’s other properties are in good financial standing after satisfactorily resolving issues with all other lenders, and our transaction with Benchmark Pyramid is proceeding as planned,” Provenance Hotels, which owns Portland Hotel LLC, said in a statement provided to KOIN 6 News.