The foreclosed Cambria Hotel in downtown Milwaukee has been acquired by its lender, in a transaction valued at $11.1 million, according to state records.
The 132-room hotel at 503 N. Plankinton Ave. opened in October 2019 just before the COVID-19 pandemic. It was developed by Chicago-based
Murphy Development Group.
Atlanta-based
Access Point Financial filed a
foreclosure suit against the hotel's developer in July with a $17.5 million foreclosure judgement, according to court records. A sheriff's auction was held last month to find a new buyer.
Records from the Wisconsin Department of Revenue show that an affiliate of Access Point Financial acquired the property at the sheriff's sale for $11.1 million.
The downtown Milwaukee Cambria Hotel has continued to operate throughout the foreclosure proceedings under a receivership, court records show. The four-story hotel also has a full-service bar and restaurant.
Murphy Development Group and Access Point Financial LLC did not immediately respond to requests for comment.
This is the third hotel in or near downtown Milwaukee to face financial trouble recently. In August, the Hampton Inn & Suites in the Westown neighborhood was taken back by its lender in a deed in lieu of foreclosure action. In September, the Iron Horse Hotel in Walker’s Point was sent to auction to resolve its ongoing Chapter 11 bankruptcy. The Hampton Inn has a new Illinois-based operator and the Iron Horse resolved its bankruptcy after the auction.
While all of these hotels have unique circumstances, hotel industry experts attribute the foreclosures to a myriad of financing challenges hotel owners and developers are facing in the post-pandemic era including rising interest rates, a wave of debt maturity and the slow return of business travelers.
The Cambria Hotel brand focuses on business travelers, according to its franchisor, Maryland-based Choice Hotels International Inc.
