The owners of Aspen’s Mountain House Lodge filed for Chapter 11 bankruptcy Tuesday, delaying this morning’s planned foreclosure sale on the property.
The sale is currently put off for one week, but that could change if the court accepts the bankruptcy petition, which would trigger a longer process.
The property, located at 905 E. Hopkins Ave., is one of the handful of remaining lodges that offer rooms at or below $200 a night during the peak season. Average daily rates for Aspen lodges shot up 11 percent in February to $468, with many high-end options starting at $700 a night.
The property’s owners, who paid $7.98 million for it in 2007, went into foreclosure in November, owing Community Banks of Colorado $5.68 on an $8.54 million loan. The bank entered a minimum bid for the now-continued foreclosure auction of $5.5 million.
Aspen Mayor Mick Ireland had urged the rest of council consider taking action to prevent a new owner — who would likely be enticed to convert the property into luxury condos — from further sapping Aspen of affordable lodging options. Council has taken no action on Ireland’s pleas, expressing skepticism about fronting the cash and getting into the lodging business. However, with the case headed for bankruptcy court, there could be more time to come up with a solution.