Chapter 11 sought for land under Allegria Hotel

The owners of the upscale Allegria Hotel & Spa along the boardwalk in Long Beach have asked a judge to place the real estate underlying the 143-room facility under Chapter 11 bankruptcy protection.

Court papers filed in the Eastern District in Brooklyn late last week showed that Manhattan-based Alrose Group's Alrose King David, which owns the land on which the hotel sits, had between $10 million and $50 million in both debts and assets. The Allegria, owned by a separate company and one of Long Island's newest and most upscale hotels, opened in September 2009 at 80 W. Broadway.

Allen Rosenberg, president of Alrose Group, stressed that the hotel is not in bankruptcy and will continue to operate normally. Rosenberg and his partners own both companies.

“The hotel is on an upswing,“ Rosenberg said. “The [bankruptcy] filing is a necessary evil to get us through some restructuring. We hope to be out of bankruptcy as quickly as possible.“ Rosenberg said that could take anywhere from 90 days to two years.

He declined to say why he and his partners filed for Chapter 11, and the three-page filing does not offer reasons. Rosenberg cited “confidentiality agreements” with some lenders.

Borrowers usually file for bankruptcy protection when they are unable to pay their bills, including mortgages.

Nevertheless, Allegria is expecting a sellout when Quiksilver Pro New York, a giant surfing event, comes to Long Beach the first two weeks of September. Some 20,000 visitors are expected to be in Long Beach for the event.

Allegria got off to a tough start, opening during the thick of the recession. Construction delays caused the hotel to miss its first summer season in 2009.

Brian Rosenberg, president of Mineola-based BRNY, hospitality consultants, said Allen Rosenberg, who is no relation, had the right vision, if not always the best luck: “If he gets through this [bankruptcy] he'll do all right.“