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

Defrauding (by) An Innkeeper

Claimed to be historic, intimate, charming, blah blah blah. Was a big old house that was cut up into cheap apartments at one time.

Pacific Grove Inn on Pine Avenue shut down two weeks ago and customers who were supposed to stay there say the hotel took their money and still hasn’t reimbursed them.

On Tuesday, a sign was posted on the front door of the inn telling customers to write their name, number and email on the yellow pad on the front porch.

The 16-room hotel was operated by Malibu businessman Gary Peterson, who filed for bankruptcy July 15 in Santa Barbara.

Defrauding (by) An Innkeeper