Holiday Inn of Warren was sold at auction on Thursday.
But the new owner of the 110-room hotel at 210 Ludlow St. has been behind the property for years and the hotel, restaurant, and bar will remain open.
An entity named HQ11-210 Ludlow Street LLC won the bankruptcy auction proceeding in federal court in Erie on Thursday with a bid of $2.7 million.
HQ11 was reportedly created by Wells Fargo Bank. Paperwork establishing the limited liability company was filed on Feb. 26.
The former owner, Warren Motel Associates and 210 Ludlow Street Corp., owed Wells Fargo $6.388 million. The bank was authorized to make a credit bid of up to that amount for the property.
In 2006, the owners took out a $5.1 million mortgage on the property through LaSalle Bank National Association. Wells Fargo subsequently took over that loan.
According to court documents, "debtors failed to make their monthly-installment payments under the loan... commencing on Jan. 1, 2010."
The bank filed for foreclosure on the property in 2010 and the owners subsequently filed for bankruptcy in October of that year.
United States Bankruptcy Court Western District of Pennsylvania Judge Thomas P. Agresti presided over Thursday's auction.
HQ11 was the only bidder.
An attorney representing an undisclosed potential bidder did not submit a bid following the HQ11 opening bid.
The entire proceeding lasted about 20 minutes.
John McGraw controlled both 210 Ludlow Street Corp. and Warren Motel Associates.
On Thursday, McGraw said, "This place is operating as normal in all aspects. The restaurant is open and the bar is open for the foreseeable future."