The ugly news echoed through Telluride on Friday morning: The luxury Capella Telluride hotel, as well as the Inn at Lost Creek in Mountain Village, would be closing Jan. 31.
The high-end hotels entered foreclosure last fall, after lender Swedbank called in a $154 million loan. In the past 18 months, the lender had poured $5.9 million into the hotels to cover operating losses. The lender was not going to keep delivering the dollars, said court-appointed receiver, Jack Westergom of Manhattan Hospitality Advisors.
But later Friday, word came down that a deal had been struck that would keep both hotels and their restaurants open through the season.
“All parties have reached an agreement that will in effect keep the hotel open,” Westergom said Friday afternoon. “We are working on a new business plan for the assets. We will be operating the assets. After Jan. 31, the hotel will remain open and will not close.”
“Whew,” said Telluride Tourism Board’s Kiera Skinner.
Bookings at Capella were up through the rest of the season, mirroring occupancy rates and reservations throughout the Telluride area.
“We are coming out of a strong summer, one of the strongest we’ve had, and winter occupancy rates are up,” Skinner said. “It was uncertain there what was going to happen. We are very happy it will remain open.”
