The city-owned hotel in New Jersey’s state capital has filed for bankruptcy protection, saying it owes $25 million and needs “breathing room” from creditors.
Lafayette Yard Hotel & Conference Center is also Trenton’s only hotel. It opened in 2001 and was promoted as a potential boon for a struggling city.
The Times of Trenton reports the hotel’s owner said in court filings this week that it owes money to 181 creditors.
A bankruptcy plan is to be in place by the end of January.
The city’s mayor asked the board that oversees the 197-bed hotel to sell it, and the board is planning an auction.
The hotel has more than $13 million in city-backed debt.