1,036-room hotel

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David Gilmer, president with Sperry Van Ness/Gilmore Auction inKenner, LA, says the 1732 Canal St. hotel drew nine sealed bids fora dual-auction process. All bidders were invited to participate inlast week's final round. Gilmer is withholding the buyer's nameuntil bankruptcy court approves the sale. The hearing is slated forthis week.

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"This was a challenging property to market from the standpointof its condition, age and environment," Gilmer tells GlobeSt.com.He says some offers came from developers interested in convertingthe hotel to senior housing or condominiums while others proposed atotal demolition and ground-up project.

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The Grand Palace Hotel, situated on 1.88 acres, was shut down inJanuary 2007 by New Orleans-based Louisiana Worship HospitalityLLC, which filed for Chapter 11 protection shortly thereafter.According to court records, the owner had accrued about $4 millionof debt since it bought the hotel in 2003. Gilmer says the winner'soffer will effectively clear the property's debt if it's ultimatelyaccepted. He says the winner hasn't yet unveiled plans forrenovation, but will likely do so after the hearing.

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"What you have here is a 17-story building with attached parkingon historic Canal Street," Gilmer explains. "It's right in the pathof progress, next to proposed LSU Veterans Administration teachinghospitals."

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If the hospitals become a reality, Gilmer explains the new ownerwill have a property with a huge advantage. "If it doesn't comeabout, then you still have a good asset on a good street," headds.

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