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Hotel/Motel Receivership: Embracing Efficiency, Complexity, and Collaboration

At Griswold Law, we value a comprehensive approach to managing distressed hospitality assets, ensuring safety and value are at the forefront.  Through our involvement in cases throughout the region, we’ve demonstrated our commitment to navigating complex hotel receivership situations effectively, embracing challenges to solve problems previously deemed unsolvable.   

Mayan Hotel Recovery Following Catastrophic Incident

Mayan Hotel

Slide 1/4 - After a previous closure, arson was believed to have been the culprit at the Mayan Hotel in 2021.

Mayan Hotel
Slide 2/4 - Officials feared the threat of collapse, prompting swift action calling for the appointment of a receiver.
Mayan Hotel
Slide 3/4 - The property was found to have dangerous levels of hazardous materials, so the property was demolished at the recommendation of the receiver.
Mayan Hotel

Slide 4/4 - After the property was demolished, the vacant lot was sold to be transformed into a safe community space.

Swift action was key in assuming control as Health and Safety Receiver of the Mayan Hotel in El Centro, California, which was destroyed by a devastating fire in 2021.  The blaze severely compromised the building's structural integrity, making it unsafe for fire and rescue teams to conduct thorough searches for potential victims. Believed to be an act of arson, the incident occurred three years after the hotel’s previous closure in 2018 due to public health concerns. 
 
The fire created an immediate safety threat, with officials fearing that the unstable remnants of the hotel could collapse. To enable a swift transition in management, the city initiated a lawsuit, nominating Griswold Law as receiver. The building was immediately secured with fencing and 24/7 security while an assessment of the building’s condition was underway. Mr. Griswold proposed a rehabilitation plan which ultimately called for complete demolition due to hazardous asbestos, posing a severe threat to the public.  
 
After the demolition, Griswold Law partnered with a real estate agent to sell the property. The City of El Centro offered a competitive bid, which the court approved. Residents celebrated Mr. Griswold's swift actions, transforming a longstanding hazard into a safe community space. 

 

Reviving a Community Asset at Americana Lodge 

Americana Lodge

Slide 1/6 - The Americana Lodge prior to receivership.

Americana Lodge

Slide 2/6 - Guest rooms at the former Americana Lodge prior to receivership intervention.

Americana Lodge

Slide 3/6 - The property was declared substandard and residents were relocated so the receivership plan could be implemented.

After photo - Americana Lodge (Americana Modern Hotel)
Slide 4/6 - A buyer was located to perform the work necessary to bring the property into compliance and was later transformed into the Americana Modern Hotel. All work was done under receiver supervision. 
Americana-Modern-Hotel-Redding-California-two

Slide 5/6 - The Americana Modern Hotel today in downtown Redding, CA. 

Americana-Modern-Hotel-Redding-Bald-Eagle
Slide 6/6  - Once a public nuisance, the Americana Modern Hotel has restored safety to the community.

The Americana Lodge in Redding, California was a 59-unit motel that became a public health and safety nuisance after nearly 60 years in operation. This property, nestled in the heart of downtown, posed serious safety risks to both long-term and short-term occupants, and cast a shadow on the charming downtown community.   

Safety, efficiency, and integrity were paramount throughout the process. Once Griswold Law was appointed, inspectors were hired to determine the extent of the damage to the building. Occupants were interviewed and relocation assistance was secured and provided to ensure their safety, which allowed for a permanent shutdown of the motel.  

Faced with an extensive repair estimate of $1.5 million and an existing mortgage exceeding $950,000, Griswold Law recognized the financial strain of rehabilitation. Consequently, an as-is sale to a qualified buyer was recommended, which would allow for a new vision to transform the site under receiver supervision.  

This decision was a win-win for everyone involved – it not only alleviated the financial burden on the current owner, but also fostered community engagement, ensuring the motel could be revitalized into a safe and productive asset for Redding’s residents and visitors alike. With the court’s approval, Griswold Law promptly enlisted a local broker, leading to a successful property sale that invigorated the community and paved the way for future development. 

 

Transforming the Troubled Hyundae Resort & Spa into a Promising Future 

DHS Hyundae Exterior
Slide 1/8 - The Hyundae Resort & Spa was in a severe state of dilapidation when Griswold Law stepped in as receiver. 
DHS Hyundae Interior

Slide 2/8 - Extensive fire damage throughout.

8 - Before w Rock Soffits (Jul 2023)
Slide 3/8 - The previous owners had illegally constructed rock-like structures that covered the interior, exterior, and common spaces. 
DHS Hyundae Hot Tub
Slide 4/8 - The courtyard was rife with trash, standing water, and overgrown vegetation.
DHS Hyundae Hotbed for Crime
Slide 5/8 - The hotel was a hotbed for crime, squatters, and police were called nearly 400 times in a 12-month period. 
5 - Sale

Slide 6/8 - Once appointed, Griswold Law boarded up and secured the property. 

DHS Hyundae Progress
Slide 7/8 - The property was listed for sale and a buyer was found to remediate the property under receiver supervision. 
12 - New buyers update on progress-1

Slide 8/8 - As of 2025, the new owners have made substantial progress in curing the violations and restoring the property. 

 

 

Griswold Law was appointed by the Riverside County Superior Court as the receiver for the Hyundae Resort & Spa, a hotel plagued by severe disrepair and rampant criminal activity in Desert Hot Springs. Between February 2020 and February 2021, the police were called to the hotel nearly 400 times, addressing issues such as shootings, drug-related crimes, and domestic violence. The hotel's deteriorating conditions included significant mold, water damage, and a lack of essential safety features, which led the city to "red-tag" the property in August 2021 due to the risk of structural collapse.  

Griswold Law was appointed and immediately secured the premises, conducting a comprehensive clean-out. Rehabilitation costs were estimated at around $5 million. Griswold Law recommended selling the hotel in its existing state to a qualified buyer willing to invest in making the necessary improvements by entering into a compliance agreement with the city—a suggestion the court ultimately approved. Griswold Law successfully entered escrow with a capable buyer dedicated to restoring the property. 

In the second phase of the Hyundae project, considerable progress has been made as the new owners concentrate on enhancing the property in accordance with the city's compliance agreement. As of August 2024, extensive renovations are underway, including the removal of over 55,000 square feet of flooring along with all room doors, bathtubs, and sinks. Additionally, more than 30,000 square feet of unpermitted rock features have been demolished from both the interior and exterior. The spa, lobby office, restaurant, and parking lot have all been cleared of unusable materials, and debris removal efforts have mitigated fire risks, creating a safer environment for all. 

 

Trust Griswold Law for Effective Hotel Receivership Solutions 

Griswold Law's experience with hotel receiverships showcases our ability to tackle complex challenges, leaning on our core values to provide effective and lasting solutions. The successful transformations of the Mayan Hotel, Americana Lodge, and Hyundae Resort & Spa not only illustrate our methodological approach but also reflect our resolve to serve as a catalyst for positive change within the communities in which we operate.  

Contact us to learn more about our hotel and motel receivership services. 

 

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