NEWBURGH, N.Y. -- A former Clarion Hotel filed for Chapter 11 bankruptcy last week, a few days before a scheduled foreclosure sale of the property by Hudson Valley FCU.
The Poughkeepsie credit union, which claims the hotel owes it about $3 million, last year began foreclosure proceedings against the 13-acre property. A foreclosure sale of the 120-room hotel was scheduled for Oct. 5, but the bankruptcy filing halted that proceeding.
The Hudson Valley Hotel & Conference Center came into financial trouble in 2009, according to its bankruptcy papers. The recession diminished the business’s revenue, and the hotel lost its brand-name flag.