The Shilo Inn on Lindsay Boulevard has gone into foreclosure and will be put up for public auction. The sale will take place at 2 p.m. on Aug. 11 in the offices of Alliance Title & Escrow Corp. in Idaho Falls. The property will go to the highest bidder and include all machinery, furniture, furnishings, equipment, computer software and hardware fixtures.
According to the foreclosure notice, “the defaults for which this sale is to be made” include the failure to make monthly debt service payments of $274,510.96 due on July 15, 2019 and the continued failure to make them each month thereafter. As of Feb. 5, the owner had also failed to pay $436,978.85 in tax reserves, insurance and deposits, $68,375.11 in default interest, $71,144.99 in late fees, $249,558.96 in prior default interest, $37,800 in special servicing fees, $24,677.49 in property protective advances, $64,108.98, $850 in processing fees, along with other payment failures. As of March 19, the trustee was listed as Alliance Title & Escrow Corp.
The loan amount for the Shilo Inns property was $5,300,575 with non-default interest set at 6.05% and a default interest at the rate of 11.05%. As of Feb. 5, the principal balance due was $4,954,532.88 with the total balance owing coming to $6,844,006.99.
The hotel is part of the Shilo Inns hotel corporation. At its height in 2001, owner Mark Hemstreet owned 47 hotels, most of them located in western United States. However, the company has faced frequent financial difficulties in the last two decades and today less than 20 Shilo Inns remain a part of the corporation.
According to a local Shilo Inn employee, it has been years since Hemstreet visited his Idaho Falls location.
This is far from the first time a Shilo Inns location has run into trouble with loan payments in recent years. In 2016, California Bank & Trust won a $20 million judgment against Hemstreet after three of his hotels defaulted on loans. The Bend, Oregon, location went to auction last summer after defaulting on $9 million in debt. Other locations in the area have been quietly sold to other hotel franchises, including the Shilo Inns in Salt Lake City, Coeur d’Alene and Twin Falls.
Shilo Inns in Idaho Falls first opened its doors in 1988. The 161-room hotel overlooks the Snake River and has two restaurants inside, Redd’s Grill and the Flying Goose Grill & Lounge. The hotel has one of the only large banquet spaces in the area and is often host to weddings, conventions and other large gatherings.