The Alamo is one of the most notable American landmarks and is a great source of history among Texas residents. With more than 2 and half million visitors per year, the Alamo brings a great source of revenue for nearby businesses. However, a hotel just steps from the Alamo’s front door hasn’t been able to fight off debt trouble and was even facing foreclosure earlier this year.
Hotel Indigo is located just steps from Alamo Plaza in San Antonio, Texas. The 91 room hotel has suffered a significant decrease in bookings, has an expensive plumbing issue late last year and is still paying off money it borrowed for renovations three years ago. Having already received a loan the hotel has failed to maintain its liabilities for the loan, leading to the initiation of the foreclosure. Having filed for Chapter 11 Hotel Indigo is safe from auction for now, but must now work to reorganize its finances and resolve debts to creditors.
Hotel Indigo is one of four major San Antonio hotels that filed for bankruptcy this week. A nearby La Quinta Inn, Comfort In and Motel 6 have all sought bankruptcy protection to help resolve debts with the bank. These hotels don’t just have their bankruptcy filing in common, but are owned by the same people and all took part in a $21 million loan from the First National Bank of Edinburg. No detailed financial reports have been made available, but for now the attorneys for the four hotels says, “We’re optimistic that we’ll be able to work something out with the bank.”