Aug. 17–A loan on the Doubletree by Hilton Norwalk hotel is undergoing a foreclosure proceeding, according to a analysis firm that tracks commercial lending, which added the venue could be sold after stabilizing its finances.

The Doubletree Norwalk is located at 789 Connecticut Ave. in Norwalk on the Darien line, with the hotel having a few natural advantages in easy access to Interstate 95 and having the global headquarters of Priceline Group across the street. The hotel has 265 units and last underwent a major renovation in 2011.

Hilton Worldwide owns the Doubletree brand, with the Norwalk hotel one of nearly 500 under that name. Hilton operates more than 5,000 hotels globally with flags like Waldorf Astoria, Hilton Garden Inn, Hampton by Hilton and Homewood Suites among others.

In a recent report on a $20 million loan secured by the Doubletree Norwalk, the commercial loan analyst firm Trepp stated that payments on the loan had been current through March before falling behind, with the loan entering foreclosure status in July. The report does not specify a timeline the hotel has to get back into compliance with its loan terms, or what action it could be exposed to if it does not.

The Doubletree Norwalk's revenues fell 6 percent in 2016 to $9.3 million, with an occupancy rate of 63.7 percent in May and a debt-service coverage ratio "well below breakeven" in the words of Trepp.

Hilton Worldwide saw profits drop 30 percent in the second quarter from a year earlier to $166 million, even as revenue expanded 20 percent to more than $2.3 billion. In a late July conference call, Hilton CEO Chris Nasetta dubbed the outlook for corporate travel "the $64,000 question" with implications for the McLean, Va.-based giant's upscale brands like Doubletree.

"I've been talking to a lot of our corporate customers actually in the last couple of months, and I would say people are cautiously optimistic in the sense that they see the economy as continuing to show decent resiliency (and) positive growth," Nasetta said. "I think everybody would like to see a little bit more clarity on public policy, on some of the things that they care about the most, to unleash a little bit more optimism in the hiring, spending and consequently demand for hotel room nights … People generally view that their budgets are going to be going up."

— Paul Schott contributed to this report.

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