Home Industries Hospitality & Tourism Milwaukee Marriott Downtown hotel owes more than $45 million to creditors

Milwaukee Marriott Downtown hotel owes more than $45 million to creditors

Milwaukee Marriott Downtown hotel.
Milwaukee Marriott Downtown hotel.

The Milwaukee Marriott Downtown hotel owes at least $45 million to creditors as the business seeks to restructure its debt. Wisconsin & Milwaukee Hotel LLC, an affiliate of Milwaukee-based Jackson Street Holdings, which owns and operates the hotel, sought Chapter 11 bankruptcy protection Tuesday. The 205-room hotel, located at 625 N. Milwaukee St., opened in

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Hunter covers commercial and residential real estate for BizTimes. He previously wrote for the Waukesha Freeman and Milwaukee Journal Sentinel. A graduate of UW-Milwaukee, with a degree in journalism and urban studies, he was news editor of the UWM Post. He has received awards from the Milwaukee Press Club and Wisconsin Newspaper Association. Hunter likes cooking, gardening and 2000s girly pop.

The Milwaukee Marriott Downtown hotel owes at least $45 million to creditors as the business seeks to restructure its debt.

Wisconsin & Milwaukee Hotel LLC, an affiliate of Milwaukee-based Jackson Street Holdings, which owns and operates the hotel, sought Chapter 11 bankruptcy protection Tuesday.

The 205-room hotel, located at 625 N. Milwaukee St., opened in 2013 and will remain open as its owner works to restructure its finances and operations.

In a preliminary filing in U.S. Bankruptcy Court, the owner lists assets and liabilities ranging from $10 million to $50 million.

Of the liabilities listed in the voluntary filing, the largest claims are $42.5 million to the Wisconsin Housing and Economic Development Authority, including $16.1 million that is unsecured.

Wisconsin & Milwaukee Hotel Funding LLC claims $2 million. The entity is an affiliate of Milwaukee-based FirstPathway Partners, a private equity firm that makes investments on behalf of people outside the U.S. who seek to become permanent residents through the EB-5 program.

In 2012, Wisconsin Housing and Economic Development Authority (WHEDA), a state-created agency that primarily helps finance housing, approved more than $40 million in Midwestern Disaster Area Bonds for the $50 million hotel project. The hotel owner also owes nearly $550,000 to the city of Milwaukee. The hotel also owed $129,000 to Marriott International and $60,000 to real estate services company JLL. Other creditors include material and service providers. They include: Richman & Richman of Madison was hired as a Chapter 11 legal adviser for the hotel. Other debts listed include a $383,000 Paycheck Protection Program (PPP) loan from Town Bank, a federal funding program implemented in response to the economic impact of the Covid-19 pandemic.

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