The Hilton Hartford hotel has closed on a $7 million federal loan that will help maintain operations and protect more than 150 jobs.
At the height of the recession in 2009, the hotel faced serious financial troubles. The Waterford Group, which took over the hotel in 2005 after a $33 million makeover, negotiated a preliminary agreement with lenders earlier this year to get out from under a $22 million mortgage that had been in default since 2009.
An independent appraiser hired by the city said that the operating losses at the hotel at 315 Trumbull St. had been so devastating during the recession that the property as it was operating was worthless, given the debt weighing on it.
The city's request for a $7 million Section 108 loan from the U.S. Department of Housing and Urban Development was approved in August.
"We are thankful to all those who put forth a collaborative effort in restructuring this asset," Mark Wolman, who heads the Waterford Group, said in a statement. "We look forward to serving the future needs of the local community, corporate clients and visitors to Hartford at this beautiful hotel." Waterford officials could not be reached for further comment Wednesday.
No hotel jobs were lost during the restructuring, city officials said.
Reprinted with permission of the Hartford Courant.
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