KERHONKSON – The Hudson Valley Resort, Rochester's largest private employer, has been sold to a Chinese conglomerate, HNA Group, for a reported $13.8 million. The deal closed last Friday, according to a representative of the resort's lienholder, and marks the end of a tumultuous nine years when it was owned by a group of investors led by Eliot Spitzer, a relative of the eponymous former governor of New York.

Kennedy Funding, which had threatened foreclosure, was owed $17.6 million on the $9.78 million loaned in 2006.

When Spitzer's group acquired the hotel, it was followed by talk of revitalizing it with renovations and a world-class replacement for the existing 18 holes of golf. The Great Recession derailed any such plans, as a soaring unemployment rate hit such tourist destinations particularly hard. Once called the Granit and numbering among the last of the great Catskills resorts, HVR instead was reduced to a point where fixing even basic maintenance problems was difficult. Staff had to put out buckets to collect water from the leaking, vaulted ceiling of the lobby, and manager Orest Fedash lamented fuel bills that ran into five digits, but needed to keep the old structures warm.

The conditions led to online reviews like one that began, "Remember that smell when you walked into your grandparents' house as a child?" Spitzer and his partners filed for bankruptcy protection in 2010.

And yet the place kept elements of its old allure in many of its best tower rooms, and would sell out at several times each year for Jewish holidays, Hindu educational gatherings, firemen's conventions, and a popular array of youth-oriented music festivals in recent years.

Rochester Town Supervisor Carl Chipman wasn't surprised by the news.

"I had a meeting a couple of months ago with an attorney for an anonymous buyer," he confirmed, recalling that the attorney wanted to know if the resort could also become a retreat center without violating the town's zoning for that area. "There was also a concern about putting a heliport in there, and I told them that would take a lot more."

The "more" would include approval from the FAA, which might be difficult as it could conflict with existing flight paths for planes going to and from Stewart Airport. Then, there would have to be a public hearing in the town.

"That might not be easy to get through," Chipman said. "It wouldn't be a simple thing," convincing residents of this rural town to allow helicopter traffic in and out. "I suggested that they use Ellenville Airport instead."

According to Joseph Wolfer, who helped seal the Kennedy Funding-HNA Group deal before retiring from the former, there are plans in the works to refurbish the hotel, and that gives Chipman hope not only that the roughly 160 employees on the rolls at HVR will keep their jobs, but that there may be work for local contractors, as well.

It isn't the first time such promises have been made regarding this grand old hotel, however; Spitzer and his partners made other attempts after their initial plans were scrapped. That included a sweeping plan early last year to build an entirely new hotel and golf course before demolishing the old building, and competing for one of the casino licenses available for the region. That proposal didn't go past a preliminary meeting with the town's planning board, and was never seen again. It was followed by a bid to get video lottery terminals for the resort, in an attempt to boost the midweek business which hadn't recovered at the same speed. That needed approval by state lawmakers, and at the time Spitzer felt it had been blocked by State Senator John Bonacic, who chairs the senate's committee on gaming.

According to remarks made by Wolfer, failing to secure VLTs made it much harder for Spitzer and his partners. Kennedy Funding had advised in writing early last summer that the loan must be paid in full if VLTs were not authorized, although it did not immediately start foreclosure proceedings. That was apparently delayed while negotiations with HNA Group were finalized.

With the identity of the purchaser now public, Chipman said he's optimistic that these plans will bear fruit.

"That company is huge," he said of HNA Group, which started out in aviation but has since grown to include a wide variety of enterprises, including more than 440 hotels worldwide. "Using it as a resort and the retreat center could work. The biggest problem is keeping the midweek busy."

In addition, the supervisor noted that, "It could put our area on the map, which might help other resorts, like Pinegrove and Mohonk."

Another nearby hotel, the Nevele, was in the running for a casino license that it did not receive. CEO Michael Treanor said this week that, "An upgrade to Ulster County hotel stock is a good thing! I will have more for you in a few days on our plans, but the Nevele redevelopment plans will benefit from more quality hotel rooms in the region."

The Hudson Valley Resort's eight-story main building includes conference and ball rooms, and 323 guest rooms. It was built in the 1950s on 550 acres, and renovated just prior to the turn of the century. Spitzer did not immediately return a call for comment.