eklund

Historic Eklund Hotel Facing Foreclosure, Sale

Decreasing tourism has pushed another historic hotel into trouble. The Eklund Hotel in Clayton, New Mexico is a slice of the Old West that includes a saloon with bullet holes in its tin ceiling and a ghost named Irene. The hotel is listed in the National Register of Historic Places and was built in 1892.

It underwent a 2.3 million renovation just five years ago. An AP report highlights the impact the hotel's closing has on the small town of 2,100. The hotel has the main restaurant and bar in town. But the owners, Eklund Association, Incorporated a group of investors that has owned the hotel since 1992 have seen business shrink and are still wrestling with debt from the renovation. The owners wanted to keep the hotel open for the summer season but had to close at the end of April.

The Eklund has 26 rooms with private baths. The renovation was paid for with a $2.16 million loan from the First National Bank in Clayton that was guaranteed by the U.S. Department of Agriculture's Rural Development business program but it is not known how much is owed on that loan. The State Historic Preservation Office loaned an additional $200,000 for the project and there is still $147,600, plus 3 percent interest owed on that loan. The hotel isn't officially on the market yet as the bank is still in the foreclosure process. The town is hoping that a buyer who wants to be a part of this small town will come along, save the hotel and join the community.

Gallery: Hotels and Inns for Sale