Texas firm buys foreclosed Owatonna hotel

An Owatonna hotel that went into foreclosure earlier this year has been purchased by a hospitality firm based in San Antonio, Texas.

According to a report published Sept. 14 in Finance & Commerce, the former Holiday Inn & Suites/Motel 6 will soon reopen as a Doubletree by Hilton. The 4-story hotel on 4.5 acres was sold for $3.2 million to La Main Capital Group LLC.

Interest in the property was described in the article as “overwhelming”.

Minnwest Bank took ownership in February of the property, which is located west of I-35 and north of Degner Regional Airport. Built in 1999 as a Holiday Inn, the hotel was once a popular destination and often hosted community events. At the time of foreclosure, a pool/waterpark, conference center, and restaurant had all closed, and recent online reviews mentioned deteriorating conditions in common areas and the parking lot.

In February, City of Owatonna Economic Development Director Troy Klecker said much of the property had been sitting empty before the foreclosure.

“A change in ownership will allow the whole property to be more fully utilized,” he said.

This is a developing story.