Troubled Menomonee Falls Radisson Hotel Goes Into Receivership

A Waukesha County Circuit Court judge has appointed a receiver to operate the in Menomonee Falls at the request of village officials, who are concerned that lawsuits pending against the hotel's owners could affect the operation of the establishment.

Officials are worried about the litigation because Menomonee Falls loaned owner Lodging Investors of Menomonee Falls $17 million to build the hotel. The owners missed the first payment of $700,000 on that loan, which was due this month, according to the Journal Sentinel's Tom Daykin.

The receiver will collect revenues and profits from the hotel and "maintain the operations of the hotel in a status-quo circumstance for the benefit of the village and the hotel," according to a statement issued Tuesday by the village.

The action comes as the owners of the hotel, which opened this June, face a civil fraud lawsuit stemming from "private financing for the hotel's development," Daykin reported on Sunday.

"The Village Board of Trustees is certainly concerned about recent events involving the Menomonee Falls Radisson Hotel and the outside litigation that is pending against current owners," the village's statement said. "However, the Village Board of Trustees believes that the appointment of a receiver is a prudent measure to take to assure the community and its citizens that the hotel’s operations will be legally protected during this period of outside litigation."

In the statement, village officials noted that the hotel's owners and the Radisson Hotels International Inc. supported the appointment of a receiver.

"The village appreciates the confidence expressed by Radisson in this hotel and its ownership during this process," the statement said. "Radisson’s consent
should be a clear sign to everyone that this hotel is a viable entity."