Cambria hotel in Chapter 11
A new luxury hotel in the seaside town of Cambria has found just how tough it can be to get off the ground.
The development company for the new El Colibri hotel and spa has filed for Chapter 11 bankruptcy, listing $9.5 million in liabilities, and has put the hotel up for sale seven months after it opened.
Robert Mueller, a partner at development firm The Cambria Moonstone, said that he expects his company will eventually emerge from Chapter 11, a type of bankruptcy in which an entity can continue to operate as it restructures its debt. But as one of the company’s options for resolving its debt issues, it has put the hotel up for sale with an asking price of $8.4 million.