PITTSBURGH, PENNSYLVANIA A joint venture led by investor Milton Fine that owns 22 budget hotels has filed for Chapter 11 bankruptcy protection.
Budget Portfolio Properties LLC is facing a US$69 million foreclosure case from Citizens Bank of Pennsylvania. Budget Portfolio owns hotels comprising about 2,200 guestrooms in Minnesota, Wisconsin, Iowa, Michigan, Texas and Illinois under the Days Inn, Super 8, Baymont Inn & Suites, Travelodge and Howard Johnson flags. All of the affected hotels remain open.
Fine’s Pittsburgh-based investment firm, FFC Capital Corp., has a 90% stake in the joint venture. Arlington, Virginia-based Interstate Hotels & Resorts Inc. has a minority stake.
The 22-property portfolio was acquired in the 2008 buyout of Exel Inns Of America Inc. Citizens Bank financed the acquisition.