Luxist

A hotel in downtown Detroit will be be put up for sale in the hopes of finding an angel of a buyer. The Detroit News reports that the Riverside Hotel, which was formerly the Pontchartrain, is being parceled off in order to pay off its debts. Wayne County Circuit Court Judge John Murphy granted permission to list the property for sale and auction off the hotel's furniture, fixtures and equipment. The 25-story hotel had undergone a $35 million renovation that included new furnishings and a lobby redesign. The auction will take place within the next 30 days.A court-appointed receiver, David Findling has been in control of the hotel for several months. Mutual Bank in suburban Chicago foreclosed on the Riverside Hotel's owners, Shubh Hotels Detroit LLC in July. Later that month Mutual Bank became insolvent and the FDIC appointed Findling as the hotel's receiver. United Central Bank of Garland, Texas assumed the Mutual Bank's loans. The Pittsburgh Tribune-Review speculates that the news of the fate of the Riverside Hotel may also doom another Shubh Hotel, the Pittsburgh Hilton which has been struggling recently. 01/10/09