The date for the foreclosure sale of the 200-room Hotel Hot Springs & Spa has been set for Nov. 20 at 11 a.m.
The public auction will be held in the foyer of the Garland County Courthouse in Hot Springs. As you know, the proceeds from the sale will help pay a $128.9 million judgment handed down against the hotel’s owner back in June.
Developer Gary R. Gibbs of Niceville, Florida, agreed to the judgment and the foreclosure for his limited liability company that owned the downtown hotel.
The consent judgment, one of the largest in Arkansas, was not against Gibbs personally since he is in Chapter 7 bankruptcy. Instead, it is against the hotel owner, GRGCBHS LLC, in which Gibbs has an ownership interest.
The hotel has been in receivership since last October. The receiver, K Partners Hospitality USA LLC of San Antonio, last week released its latest financial statement for the hotel.
Between Jan. 1 and Sept. 30, its revenue was $4.5 million. That includes $3.6 million in room revenue and $888,000 for food and drink sales. Its net income during that period was $1.35 million, according to the receiver’s filing in Garland County Circuit Court.