Owner of soon-to-open Shenandoah Mansions hotel in the Fan sued by local contractor

The six-story building stands near the intersection of Allen and Monument avenues. (Mike Platania photo)

As it nears completion and its rooms become available for booking, a new boutique hotel in the Fan has been caught in a legal dustup.

Ash Hotels, the New York City-based firm converting The Shenandoah building at 501 N. Allen Ave. into the 70-room Shenandoah Mansions hotel, was recently sued by the project’s initial local general contractor, CK Bosworth Construction. 

In the lawsuit filed in Richmond Circuit Court, Bosworth claims that Ash owes it over $2.2 million for work it performed on the building, and that its contract with the developer was “improperly terminated” late last year. 

A spokesperson for Ash said in an email that CK Bosworth was terminated “due to nonperformance issues in late December (2024)” and that Shenandoah Mansions is still expected to open soon.

Rooms at the hotel are already available for online booking for stays beginning in June, starting at $289 per night.

“We are not commenting on ongoing legal proceedings; however, we are working with our lenders to keep the project moving forward and anticipate bringing the project to completion this spring,” Ash’s spokesperson said.  

It’s unclear whether the dispute has led to a halt in construction. Ash did not respond to additional questions about whether it has hired a new contractor to finish the project.

CK Bosworth, through its attorney Christopher Hill of The Law Office of Christopher G. Hill, declined to comment. 

The project goes back to late 2021 when Ash bought the former senior living facility for $3.5 million and unveiled its plans to turn it into a hotel. After getting city approval in 2022, the building’s conversion began in early 2023. 

Built in 1924, The Shenandoah building reaches six stories and totals around 35,000 square feet. Ash, which owns and operates similar hotels in New Orleans, Baltimore, Providence and Detroit, is planning for the hotel to include an in-house restaurant and event/wedding space, among other amenities. 

Court documents indicate that the rift between Bosworth and Ash hit an inflection point in late 2024, when Ash terminated its contract with the general contractor. In January, Bosworth filed a construction lien against the property, and on Feb. 27 it filed a lawsuit to enforce the lien. 

In its complaint, Bosworth claims that Ash terminated the contract “despite (Bosworth’s) compliance” and that “despite proper performance, (Ash) has failed to make payment of sums that are contractually due and owing.”

In addition to the lien enforcement, Bosworth’s lawsuit alleges breach of contract and unjust enrichment against entities tied to Ash. Also named as defendants are the property’s trustee, Lawyers Title Realty Services Inc. and U.S. Bank. As of press time, only Lawyers Title had filed a response, in which it denies the allegations. 

Another nearby development, this one on Arthur Ashe Boulevard, is stalled and the subject of a construction lien-related lawsuit. The contractors building a co-housing apartment building at 1101 N. Arthur Ashe Blvd. have filed lawsuits against the building’s developer claiming they haven’t been paid for their work.