BEVERLY HILLS—The Viceroy L’Ermitage Beverly Hills Hotel will be auctioned off on August 19, federal representatives said on July 9.
Federal prosecutors seized the luxury hotel, which is a short walk from Rodeo Drive, as part of the $2.5 million fraud investigation in 2016.
Further, the U.S. District Court has appointed Michael M. Eidelman, a Chicago bankruptcy attorney from Keen-Summit Partners LLC group, as a special master to sell the hotel according to Hotel Business.
The bidding has commenced for a $100 million. Higher bids must start at $104 million. If nobody bids higher, the hotel will be sold to the ‘stalking horse bidder’—someone selected for the initial bid.
According to Bordwin of Keen-Summit Partners, who spoke to Los Angeles Times, the ‘stalking horse bidder’ is a savvy real estate investor with hospitality experience. Their identity hasn’t been revealed.
Interest from potential buyers has been extraordinary, according to Bordwin who is conducting the sale on behalf of Eidelman. The hotel underwent a $37 million-renovation in 2016 that helped keep the coveted 5-star rating given by Forbes Travel Guide. The 5-star review still holds to this day.
The auction will take place through an online video chat with limited participants, due to the COVID-19 pandemic.