The holding company that owns the 38-room hotel at 572 Lakeside Road and two adjacent properties, filed for bankruptcy on February 22 with the company being close to $20-million in debt. Its subsidiary, Hotel Suites Lac-Brome, once known as Auberge Quilliams, is insolvent. The tale of the bankruptcy is a sad one, driven in part by unforeseen events. In October of 2019 the new owners of the hotel property on Brome Lake got off to a rough start. Their first weekend as owners was hit with a three-day power failure which forced them to cancel all reservations. A few months later the pandemic hit. The bankruptcy means the owners lose a hotel in Montreal as well. As opposed to seeing the hotel properties sold at liquidation prices Michel Knot, an individual in the group of major creditors (real estate investors), says his group has calculated that their best option is to keep both hotels running.
They plan to develop the adjacent properties on Brome Lake to add more rooms, apartments or condos to make the operations more viable. They are in the process of taking ownership of the properties and have paid off the secured creditors, including the Town of Brome Lake which was owed municipal taxes. “We are confident to be able to pursue the operations and give the hotel the reputation it deserves based on its exceptional location,” said Mr. Knot of the Brome Lake hotel. Michel Knot further added that the group is investing extensively in repairs and equipment to restart the operations of the hotel and that they are about to sign a contract with an experienced general manager. The hotel is taking reservations and hiring.