Le Meridien Dallas By The Galleria Faces Foreclosure

Commercial real estate distress in Texas is shifting, as more hospitality properties hit the foreclosure auction block. 

The latest major Texas hotel to face foreclosure is Le Meridien Dallas, a boutique hotel in Far North Dallas near the Dallas Galleria mall. The property, at 13402 Noel Road, is owned by NB Holdings, which is run by Aly Nadir Badruddin. The owner allegedly defaulted on the $42.8 million loan tied to the property, according to Roddy’s Foreclosure Listing Service. Morgan Stanley provided the mortgage in 2019, records show. 

Badruddin’s firm bought the property in 2015. The 11-story, 258-key hotel was built in 2002 and renovated in 2009 when it became a Le Meridien property. 

The hotel’s ownership entity filed for Chapter 11 bankruptcy protection in April 2022. At the time, it had less than 100 creditors, between $50 million and $100 million in assets and between $50 million and $100 million in liabilities.The firm completed the bankruptcy process in March 2024, court filings show. 

The hotel made headlines in 2016 after 46-year-old Brian Sample was found killed in a 10th-floor room at Le Meridien Dallas. 

There’s one other hotel in the Metroplex with the Le Meridien flag, Le Meridien Fort Worth Downtown, at 811 Commerce Street. Blueprint Hospitality converted a former parking garage into the 188-key hotel. The Stoneleigh, at 2927 Maple Avenue in Uptown Dallas, is dropping the Le Meridien brand with the debut of a multimillion-dollar renovation set to be completed this spring. The property, which is owned by Brookfield, will transition to Marriott’s Autograph Collection. 

Apartment complexes and office properties have dominated the foreclosure auction block across the Texas Triangle in the last few years. But distress has been shifting to include more hospitality properties. In January, nearly $170 million in loans tied to hotels were flagged for foreclosure in Dallas, Houston, San Antonio and Austin, according to Roddy’s Foreclosure Listing Service.

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