Chicago Hotelier Files Bankruptcy to Pause Big Foreclosure

Veteran Chicago hotelier Su-Mei Yen appears to be desperate while facing a $187 million foreclosure lawsuit brought by lender Acore Capital for South Loop developments.

Hinsdale-based Yen late last week filed for Chapter 11 bankruptcy protection for 18 companies tied to the two-hotel development at 1100 South Michigan and 1101 South Wabash avenues, public records show. The move likely pauses any foreclosure proceedings against her and her firms, at least for now.

San Francisco-based Acore filed the $187 million foreclosure suit in August in Cook County court.

Yen’s firm, SB Yen Management Group, developed the hotel properties in 2018. They consist of the 172-room Best Western Hotel on Michigan Avenue, which was renovated in recent years; as well as the Homewood Suites by Hilton on Wabash Avenue, which includes 196 hotel rooms, and a separate 85-room extended stay suites section, plus ground-floor retail.

Yen and her daughter, Cassie Yen, are also facing three separate lawsuits filed over the past year in Cook County court, brought by investors who say they poured nearly $50 million into the property’s development entities led by the Yens through the federal EB-5 program. The program offers visas to foreign financial backers of real estate projects.

Several of the entities seeking bankruptcy protection listed between $100 million and $500 million of liabilities owed to between 200 and 999 creditors, and the same amount of value in assets. Among the largest unsecured creditors listed by one of the entities are the city of Chicago, which is owed more than $1.7 million; and the Illinois Department of Revenue, owed more than $1.6 million. Combined, Hilton, the Cook County Department of Revenue and Best Western International are owed just under a collective $1.7 million.

Neither Su-Mei Yen, the attorney for her entities’ bankruptcy cases nor Acore immediately returned requests for comment.

This is a developing story. Check back for updates.