BREAKING NEWS: Shilo Inns Bend, a 34-year fixture of the city’s lodging scene, closes abruptly amid bankruptcy
BEND, Ore. (KTVZ) -- Shilo Inns Bend, located on the banks of the Deschutes River, was abruptly closed Monday, and a representative told KTVZ News it is a temporary closure amid bankruptcy proceedings.
An employee of the 151-room hotel told KTVZ he was notified of Monday's closure in a text from his manager. He also said paychecks have been bouncing for the past three months.
A sign on the locked front door of the hotel on O.B. Riley Road apologized for the inconvenience, but said that "due to unexpected circumstances we are temporarily closed until further notice."
It advised would-be guests to contact the neighboring Riverhouse Lodge for accommodations.
A visit to the hotel website's booking page Monday afternoon did not allow visitors to make reservations.
Crystal Knowles, the hotel's assistant general manager, told KTVZ News the hotel is not permanently closed but is undergoing bankruptcy proceedings.
Shilo Inns, founded in 1974 by Mark Hemstreet, reports having having 12 hotels around the West. It bought Bend's former Touch of Class Motor Inn in 1992.
It's not the first financial difficulties faced by the hotel. It was scheduled fpr auction in the fall of 2019 after defaulting on about $9 million in debt. But an attorney for the firm told The Bulletin at the time that they could pay off the debt any time before the sale.
Deschutes County property tax records on Monday indicated Shilo Inn Bend LLC is still owned by the hotel chain's parent firm, Shilo Inns Hotels of of Vancouver, Wash. The 7.52-acre commercial property has a real market value of $15.5 million.
Shilo Inns has closed or sold several hotels in recent years due to financial problems or other issues.
This is a developing news story, and KTVZ News is working to learn more.
