The Sonoma County family that owns a small portfolio of local hotels has steered one of its key properties into Chapter 11, putting the Holiday Inn Windsor–Wine Country under federal court protection while the business tries to regroup. The bankruptcy filing lists the Windsor Holiday Inn as the company’s only asset and seeks a court-supervised reorganization that keeps the hotel running and pays workers and vendors as usual. For now, local bookings and day-to-day service at the property appear to be continuing while the case works its way through the system.
As reported by The Press Democrat, the hotel is owned by the Desai family, which developed its first Healdsburg property in the early 1990s and now runs multiple Sonoma County motels through a family management group. In a statement to the paper, the family’s attorney, C. Alex Naegele, said the business “fell behind on some payments” and hopes to reorganize quickly under Chapter 11. Court filings name Nick Desai Jr. as the responsible individual for the debtor company.
Court paperwork and immediate orders
The bankruptcy docket shows that Windsor Hospitality Group LLC filed a voluntary Chapter 11 petition on June 3 in the Northern District of California, where it was assigned case number 26-10425. Public case records include an interim order authorizing the company to use cash collateral to cover operating expenses while the case is pending, according to Bkalerts. That interim relief is intended to keep the hotel open and to maintain payroll and other essential services.
Franchise questions briefly raised
Early hearings raised a red flag over the hotel’s franchise status after the debtor expressed concern about being removed from IHG’s reservation system. The court’s Tuesday hearing agenda lists an Emergency Motion To Enforce The Automatic Stay Against IHG Hotels To Prevent De-Listing as taken off the calendar, and the docket notes appearances by franchise counsel, according to the U.S. Bankruptcy Court calendar. The Press Democrat reported that IHG provided written assurances it would not de-list the Windsor property.
Family portfolio and a nearby hotel on the market
The Desai family operates several small lodging properties in Sonoma County and counts the Holiday Inn Windsor among its holdings, The Press Democrat reported. One nearby asset tied to the family’s broader footprint, Hotel Vinea in Healdsburg at 178 Dry Creek Road, is currently on the market with an asking price of about $7.5 million, according to commercial listings. That listing describes a compact, 23-room property built in 1992 and marketed to investors looking for an operational boutique hotel in wine country.
What’s next in court
Public docket entries schedule a meeting of creditors, known as a 341 hearing, for July 13, and require the debtor to file an updated status report by July 24. The judge has also set a continued hearing for July 31 at 10 AM. Those dates will shape whether Windsor Hospitality completes a reorganization plan, negotiates a sale, or reaches terms with secured lenders and the franchise interest. Orders entered in early June also authorize payment of employee wages and other immediate obligations so the hotel can continue serving guests during the Chapter 11 process.
For now, the Windsor Holiday Inn remains open, and management says it intends to operate as normal while the case plays out, keeping bookings and jobs intact in the short term. The July filings and the continued hearing will be the next checkpoints for guests, employees and local stakeholders watching how the Desai family’s holdings play out in bankruptcy court.
