Failed Hotel To Be Sold

String of failures? Maybe it was better divided up as a rental.

John Hankard, a realtor with Sotheby’s International Realty, said the property will be listed with a price tag of $3.5 million once the current bankruptcy proceedings that surround it are settled.

In July the inn was abruptly shut down leaving prepaid guests with room reservations high and dry. That was after the lessee, Malibu business man Gary Peterson, filed for bankruptcy. The 16-room yellow historic inn located at 581 Pine Ave. is owned by David Spence who also owns Pacific Grove’s Beachcomber Inn. Spence leased the inn to partnership Monterey Peninsula Inns LP in 2001, who then assigned the lease to Monarch Hospitality LLC. In 2009, Monarch assigned the lease to PG Inn Inc. (principal Gary Peterson).

Hankard said Peterson has been behind in property taxes and transient occupancy taxes to the city, as well as payments to Spence.

Failed Hotel To Be Sold