Ramshackle Motel Transitioning into Days Inn and Wyndham Microtel
This 96-unit motel was in bad shape when we were appointed as the Receiver. Many of the rooms lacked running water, had mold, malfunctioning electrical outlets, missing flooring, and broken windows. Additionally, the motel was plagued by rampant crime. An engineer assessed that with the building’s poor structural integrity, there was a possibility that it could collapse in the event of strong winds or an earthquake. In total, officials found 1795 violations of health and safety laws onsite.
Management of the Motel Fails to Assist Occupants at Risk Under Perilous Conditions
While there were many instances where the Motel management neglected to properly assist guests and even put guests in grave danger, the following story is one example of the terrible way that the property was maintained prior to our appointment. An electrical fire had recently occurred in one of the rooms and we were alarmed to find that a charming woman, who was both elderly and disabled, was residing in a unit that did not have wheelchair access and lacked fire safety equipment. Fortunately, the electrical fire was contained and did not reach her room, but it would have been almost impossible for her to escape from an emergency.
Receivership Successfully Relocates 19 Occupants Even Though They Were No Longer Paying Motel Guests
Upon our appointment, 19 individuals resided at the motel and it became apparent that they were not paying for their rooms and were simply squatting on the property. When it came to relocating these people so that we could begin our work to remedy the health and safety violations, we found that these individuals did not have other housing options and didn’t have the money to cover a first and last month rental deposit. Fortunately, we were able to provide the occupants with the funds necessary to relocate to new and safer housing. Indeed, it took a lot of coordination on our part to successfully assist all of these people at the same time. In some cases, we physically helped them move their belongings, while we communicated with their new landlords to deliver the checks to cover their rent.
Receivership Remedy Results in Responsible New Motel Ownership
We were able to sell the motel to a new owner with the capacity to bring the property up to code and turn it into an asset for the surrounding community. Currently, Wyndham Hotel Group is developing the property into a Days Inn.