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Law360 (August 28, 2020, 8:58 PM EDT) -- The operator of a Trump-branded hotel in Vancouver announced Friday that the property's extended closure due to the COVID-19 pandemic had sent it into insolvency with what it told Canadian authorities was close to CA$4.8 million ($3.66 million) in debt.
In the announcement, the parent company of TA Hotel Management LP, the operator of the Trump International Hotel and Tower, said that it had appointed an insolvency trustee Thursday.
"Its ongoing expenses since the outbreak of COVID-19 and lack of revenue has placed TAHMLP into a position of insolvency, therefore it is in the interest of TAHMLP to appoint a trustee to administer the assignment for the benefit and interest of all stakeholders," it said.
The company said business advisory firm Grant Thompson Ltd. was serving as trustee.
According to Canadian bankruptcy records, the company declared Thursday that it has just over CA$1.1 million in assets and just under CA$4.8 million in liabilities, and the first creditor's meeting is scheduled for Sept. 16.
The 147-room hotel opened in February 2017 to protests by local residents and city and provincial elected officials objecting to its association with President Donald Trump. According to published reports, the hotel has been closed since the beginning of April due to the pandemic.
The company is a subsidiary of TA Global Berhad, a Malaysia-based property development and management firm that owns hotels and other commercial properties in Asia, Australia and North America.
Representatives of TA and TA Global did not immediately respond to requests for comment late Friday.
The hotel industry has been hit hard by COVID-19 travel restrictions. On June 2, Hilton CEO Christopher Nassetta said during a virtual conference with other major hotel chief executives sponsored by New York University that the hospitality industry is running at 25% to 30% occupancy, down from 75% last year.
The American Hotel and Lodging Association reported in May that 83% of hotel debt borrowers have asked for forbearance or payment deferral on loans.
--Additional reporting by Joyce Hansen. Editing by Abbie Sarfo.
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