Distressed Hotels and Foreclosures: U.S. Hotel Loan Defaults and Auctions
Recent U.S. hotel loan defaults, special-servicing transfers, foreclosures, receiverships, auctions and lender takeovers. Each item has the property, market, status, date and a source link. Thin weeks stay thin — we do not invent distress.
Last updated: October 30, 2026 · Newest first. Cross-check the Rates & Lending page for Trepp lodging delinquency (6.18% in September).
29 Oct 2026
Lombard, IL
Embassy Suites Chicago Lombard Oak Brook sold out of foreclosure for $24.1M
The 262-room hotel’s $25.3 million CMBS loan matured unpaid in May 2025, and special servicer KeyBank put it in receivership. Endeavor Hotels bought it for $24.1 million (about $92,000 a key), above the roughly $23 million guidance from Hunter Hotel Advisors. The prior owners paid nearly $34 million in 2015.
Oct 2026
Englewood, NJ
Crowne Plaza Englewood — $7.8M loan deemed non-recoverable
KBRA, affirming ratings on MSCI 2015-UBS8, said the loan was deemed non-recoverable and estimated a $2.1 million loss (26.5%) based on a $9.2 million appraisal from March 2026.
13 Oct 2026
Cincinnati, OH
Hilton Cincinnati Netherland Plaza — $69.4M loan
Special servicer K-Star Asset Management’s Oct. 13 comment says the loan, in special servicing since February 2021 for imminent payment default and paid only through December 2022, has been deemed non-recoverable.
Oct 2026
Portland, OR
Hotel Eastlund — $36.7M loan now 90+ days late
The loan on the 168-room independent full-service hotel moved from 60–89 days late to 90-plus days late. LNR Partners is special servicer.
Oct 2026
Orlando, FL
DoubleTree Orlando — $22.7M loan back in special servicing
The loan transferred to special servicer Rialto Capital Advisors on Sept. 4, 2026 and moved from 30–59 days late to 60–89 days late. It had returned to the master servicer after a 2022 settlement.
2 Sep 2026
Jacksonville, FL
Crowne Plaza Jacksonville — $15.5M loan transferred
The loan transferred to Rialto Capital Advisors on Sept. 2, 2026; the servicer says it is reaching out to the borrower.
Aug 2026
Melbourne, FL
Crowne Plaza Melbourne Oceanfront — $34.5M loan transferred
The loan on the 290-room oceanfront hotel (built 1979, renovated 2018) transferred to special servicer CWCapital Asset Management in August 2026.
Oct 2026
Atlanta, GA · Broomfield, CO
Three hotel loans leave special servicing
Fairfield Inn Perimeter Center ($11.6M) and Fairfield Inn Atlanta Buckhead ($9.8M), both with Argentic, and Hyatt House Broomfield ($9.6M) returned from special servicing.
19 Oct 2026
Multiple states
Project Prime portfolio — $745.7M loan sent to special servicing
The $745.7M Project Prime loan, securitized in THPT 2023-THL, moved to special servicing for imminent monetary default. Collateral is now 72 hotels with 7,008 keys across 19 states, down from 84 hotels and 7,993 keys. The loan matures in December 2026 with no extensions left, per KBRA.
17 Oct 2026
New York, NY
ARIYA Hotel New York Times Square, Tapestry Collection by Hilton
199-key, 21-story hotel at 34-36 W. 38th St., about 94% complete, with a project cost of roughly $83M. Secured party SBT Capital will auction OnBoard Hospitality Holdings LLC’s interest online through Maltz Auctions on Nov. 17, 2026 at 1:00 p.m., against about $6.89M of debt. The sale was previously scheduled for July 26 and Aug. 7.
16 Oct 2026
Honolulu, HI
Hyatt Regency Waikiki Beach Resort & Spa
1,230-key luxury resort. Mirae Asset failed to pay off the $302M HONO 2021-LULU SASB CMBS loan at maturity; loan sent to special servicing. Property had been in sale negotiations. Originally refinanced at $450M in 2021; Mirae bought from Blackstone for $780M in 2016.
2 Oct 2026
Santa Monica, CA
Beachfront hotel (unnamed) — $280M loan newly delinquent
Trepp’s September delinquency report flagged a $280.0 million Santa Monica beachfront hotel loan among the five largest newly delinquent CMBS loans of the month, helping push lodging delinquency to 6.18%.
1 Oct 2026
Chicago, IL
Palmer House Hilton
Trepp’s brand-distress brief puts the full-service Palmer House Hilton in foreclosure on a $328.9M CMBS balance (plus a $94.3M nonperforming mezz), accounting for most of Hilton-flagged Chicago nonperforming exposure. Occupancy was reported at 82.0% with DSCR down to 1.04x.
1 Oct 2026
Chicago, IL
Hilton Suites Chicago Magnificent Mile
Trepp lists the hotel as real estate owned at a $64.4M balance, part of the same Chicago Hilton-flagged distress cluster as the Palmer House.
2 Jun 2026
Austin, TX
The Line Austin
JP Morgan took the 428-key Line Austin with a $172 million credit bid at a June foreclosure auction — about $402,000 a key on the bid amount.
2 Jun 2026
Austin, TX
Hyatt Centric Congress Avenue Austin
A Peachtree Group affiliate took the Hyatt Centric at the same June foreclosure auction for $50.5 million from Realberry.
Mar 2026
San Antonio, TX
Thompson San Antonio
Lenders credit-bid the 162-key Thompson at about $40.6M in March; The Loren Group bought it in October for $41.0M with $32M seller financing.
28 Oct 2026
Houston, TX
Four Points by Sheraton Houston IAH Airport
123-key hotel (built 2017) listed for RealINSIGHT Marketplace’s Dec. 2 online auction with a $2.5M starting bid (~$20k/key). T12 to Aug. 2026: 67.0% occ / $91.08 ADR; NOI negative every year since 2023. Broker: Avenue Advisors.
16 Oct 2026
El Paso, TX
Holiday Inn El Paso West – Sunland Park
175-key hotel sold by a court-appointed receiver to a local hotelier; brokered by Alchemy Real Estate Advisors. Price not disclosed.