The hotel was purchased at a bankruptcy auction from the city for $6 million in 2013
TRENTON -- There has been talk of the city's only hotel changing hands, but as much as it has struggled, management insisted Thursday that the Wyndham Garden Trenton is not for sale.
"Over the past two years, ownership has worked towards resolving issues that held the hotel from growing," owner Deepak Viswanath said in an email, pointing to the ongoing renovations and a deal they struck to bring back the labor union.
"If we were selling, we would not have done all this," he said. "But in the future, who knows if an offer may be accepted. At the moment, we are continuing to grow the business and no serious party has made any offer."
Mashkoor "Mohammed" Ahmad, the hotel's asset manager, said he has fielded calls as recently as this week from interested buyers, but has shot them down.
"I don't know where people are getting these rumors," he said. "We never sold the hotel and it's not up for sale."
The hotel is run by Welcome Hotel Group, a subsidiary of Edison Broadcasting, which purchased it at a bankruptcy auction from the city for $6 million in November 2013.
The hotel, formerly known as the Trenton Marriott at Lafayette Yard, was built by the city in 2000 and opened in 2002 to great fanfare by city officials who saw its potential as an anchor for the downtown.
It was operated by a public board of mayoral appointees, but was never profitable and the city paid the obligations on the bonds that were taken out to build the 197-room hotel. The board filed for bankruptcy in September 2013 and Edison Broadcasting emerged as the highest bidder -- though the $6 million was far less than the $60 million it cost the city to build the hotel and attached parking garage.
The hotel, though, has still faced challenges since its grand reopening in June 2014.
Former Trenton Marriott undergoing $3M renovation under new ownership
Viswanath said that the death of his father and owner, Bran N. Viswanath, forced them to put the plans for the hotel on hold.
"Only recently, we have been able to slowly get back to moving the business forward," he said.
The renovations, which began when the family bought the hotel, continue. Viswanath said they still have plans to upgrade other parts of the hotel, including the guest rooms and suites.
"I believe the hotel is doing better than last year," he said. "Once a union agreement is in place, we will be welcoming more events, especially those events involving union membership."
The hotel, though, has also been plagued with money issues.
In March, hot water services to the hotel were briefly shut off over a bill dispute. The company, Veolia North America, said they had been working for more than a year to resolve the matter with the hotel and restored service only after receiving a portion of the unpaid balance.
The hotel also owes the city $776,136 in taxes, which the city's tax division says will be auctioned at a tax sale next month. There is also an existing lien on the property for $29,150.
Viswanath said that management has hired a legal firm in hopes of appealing what he calls high taxes.
"I know that every city needs money, but we seem to be taxed higher than other similarly sized hotels with similar occupancy rates in our area," he said. "I hope we can resolve this matter soon."
Mayor Eric Jackson could not be reached for comment, but said earlier this year that he had plans to sit down with Viswanath to discuss the hotel's future.
"I want to make sure we have an owner -- him or someone -- who's committed to the viability of that hotel here in the city because not only do we have an investment long-term for debt ... but it's so essential for that hotel to survive and do well because it creates other economic development for not only the downtown, but for the entire city of Trenton," the mayor said during a media roundtable in March.
"It's not functioning today as a hotel that any of us would want to see it be," he continued. "We have to make sure that we have an owner who's willing to make the investment, time, resources and ability to run a first-rate hotel in our city."
Cristina Rojas may be reached at crojas@njadvancemedia.com. Follow her on Twitter @CristinaRojasTT. Find NJ.com on Facebook.