John King’s Inn at Morro Bay is scheduled for public auction in a foreclosure sale Thursday.
The 98-room hotel, located on the shores of Morro Bay, owes more than $14 million to at least two lenders, Wells Fargo and Missouri-based Virtual Realty Enterprises LLC, according to court documents. King also put his assets on the line when he gave his lenders a personal guarantee to repay the loans, according to his attorney, Fred Glick, who spoke to Judge Charles Crandall at a Superior Court hearing on the matter this morning.
King bought the Inn at Morro Bay in 1993. He owns five hotels in San Luis Obispo County, including Apple Farm Inn, Sycamore Springs Resort in Avila Valley and The Cliffs Resort in Pismo Beach, as well as Two Bunch Palms, a Desert Hot Springs resort, and property in Big Sur.
Glick, who represents both King and the Inn at Morro Bay LLC, told the court that arguments about the guarantee will be aired in court after they know the result of the sale of the inn at public auction.
Calls into Mike Casola, chief operating officer for King’s Boutique Hotel Collection and a spokesman for King about the inn, were not returned.