Cosmopolitan Hits Rough Patch

Perhaps you’ve heard that Fayetteville’s Cosmopolitan Hotel passed into receivership last month – and this despite its idyllic downtown setting. To review:

• On April 19, Idaho-owned ANB Venture LLC filed a “complaint and petition for foreclosure and petition for receivership” against Cosmopolitan Ventures LLC. At that time, Cosmopolitan Ventures was accused of failing to make “payments pursuant to the terms thereof while continuing to collect the rents and profits of the property.”
• On June 3, Washington County Circuit Court Judge Kim Smith appointed Rogers-based Ozark Asset Management Inc. as receiver. Brian Ferguson is listed as president of OAM. Although John Nock and Richard Alexander still own the property, Ferguson has since hired a hotel management company that specializes in distressed assets, the Chandler Hotel Group, to manage the hotel.
• On June 16, it was announced that a non-jury trial is scheduled for Sept. 9. At that time a judgment against Cosmopolitan Ventures will be requested. If granted, foreclosure could soon follow.

For what it’s worth, in mid-July someone told us potential investors were scouting the property, and that a press release regarding the hotel’s future ownership could be soon forthcoming.

It’s our understanding previous renovation efforts have left the Cosmopolitan with about 91 rooms available. That’s down considerably from the 235 rooms on the property.

 “My opinion is that it will be foreclosed, someone will buy it at the right price, and it will be rebuilt to its previous glory,” Ferguson said. “I believe if the hotel could be restored the way it ought to be, downtown will come back to life and tax revenue will be generated for the city. I want to do whatever I can do to assist in that.”