Allegria Hotel: We’ve Exited Bankruptcy Successfully

Nearly a year after the Allegria Hotel filed for Chapter 11 protection, a bankruptcy judge has approved a plan to reorganize the finances of the Long Beach establishment, according to owner Allen Rosenberg.

Last July, Rosenberg’s Woodmere-based development company, Alrose King David, listed between $10 million and $50 million in liabilities to more than 50 creditors after dozens of contractors sued the company for unpaid work on the hotel, according to Long Island Business News.

Brooklyn Federal Savings Bank fielded at least two offers of about $20 million each for a $36 million note it held on the hotel last year. The bank had actively marketed the debt since Rosenberg defaulted on the loan in 2010, but the principal note is now reportedly held by Investors Savings Bank and has been cut to $24 million. Rosenberg said: 

“We’ve exited bankruptcy successfully.”

Rosenberg purchased the King David property, at 80 W. Broadway, for $21 million in August 2007. The following year, when the financial-housing crisis hit, the 143-room luxury hotel was already under construction, replacing the former assisted-living facility. While the hotel was originally expected to open in early 2009, its rooms only partially opened by late summer in 2010.

Meanwhile, the hotel is one of just two hotels in Nassau County that has failed to pay the county’s Hotel and Motel Tax, according to an audit report released last month. County Comptroller George Maragos indicated in his report that the Allegria owes the county $132,000 in uncollected taxes since first opening in 2010. Moreover, the Allegria reportedly.