EVERETT — The city’s largest inn may not be thriving yet, but a lawsuit and a related bankruptcy are now behind the Howard Johnson Plaza Hotel.
Everett Pacific Hotel Associates LLC, which had leased Everett’s largest hotel since 1994, filed for Chapter 11 bankruptcy protection last summer. In its filing, Everett Pacific claimed it had less than $50,000 in assets and up to $1 million in debts.
A final order dismissing that bankruptcy case was signed in February, the U.S. Bankruptcy Court in Seattle confirmed. As a result, Everett Pacific is no longer leasing the property, according to court records.
Additionally, a civil case between the hotel’s owner, Pacific West Hotels Inc., and Everett Pacific has been settled, according to King County Superior Court records.
Lawrence Horwitz, a principal with Seattle-based Everett Pacific, did not return calls requesting comment on the bankruptcy and civil cases.
A representative of the hotel’s ownership also did not have much to say.
"At this point, things are sensitive, and we really don’t want to comment," said Todd Boysen, a principal at Pacific West Hotels.
The Howard Johnson at 3105 Pine St. is Everett’s largest hotel, with approximately 250 rooms. It also boasts one of the largest convention spaces in the area.
Despite that, the business has gone through a series of ups and downs over its 23-year history.
The civil suit, which apparently was settled in December, dated back to 2000. That’s when Pacific West sued Everett Pacific on charges of breaching its lease. Later that year, the two sides signed a complex settlement that called for Everett Pacific to purchase the hotel.
But Everett Pacific failed to do that, and also did not make lease payments in late 2002 and early 2003, Pacific West alleged when it revived the civil case last year. For that reason, Pacific West asked for up to $10.2 million from Everett Pacific.
Everett Pacific argued that the 2001 terrorist attacks and the resulting downturn in tourism adversely affected the market. However, a King County judge ruled that was not a reason to allow Everett Pacific out of its agreement. The judge didn’t rule on damages, leaving that for a future trial.
Neither party commented on the December settlement.
Despite the legal wrangling and Everett Pacific’s Chapter 11 filing, the Howard Johnson has tried to keep its day-to-day operations from being affected. The business has seen an increase in overnight stays because of the Everett Silvertips, as Howard Johnson is the host hotel for the hockey team’s opponents.
While Everett Pacific is no longer leasing the hotel, Northwest Lodging International has remained as day-to-day manager of the property, according to court records. Horwitz also is chairman and chief executive officer of that company.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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