02.12.2019 by Patty Bullock
Construction restarts on TraVure hotel after contractor 'blindsided' developer
Construction on Germantown's new, dual-branded Hilton hotel originally broke ground in February 2018.
The hotel — located at 6799 Poplar Ave., behind the TraVure office building — was supposed to be done this year. Last July, though, everything came to a halt.
The contractor, Ohio-based Omni Construction, was going bankrupt.
"It kind of blindsided us. You don't expect a general contractor to go bankrupt in a boom economy," said Sunny Desai, the hotel's developer.
Finding a new contractor wasn't a problem; within a week of the bankruptcy, Desai started working with Memphis-based Montgomery Martin Contractors. What was a problem was a state law that required Desai to secure a lien release from every subcontractor who had worked under Omni before he could sign a new mortgage.
"That whole process took a very long time," Desai said. "We just closed on the new loan."
Montgomery Martin recently started construction on the site, and Desai said construction will be back at "full speed" within the next two weeks.
Now, Desai said he expects the 220-room hotel to be finished in mid-2020.
The two brands on the site will be Hilton Garden Inn and Home2 Suites by Hilton.
By Jacob Steimer-Staff Reporter, Memphis Business Journal
February 11, 2019