Western Apartment Supply & Maintenance Co. estimated debts between $1 million and $10 million.

Estimated assets were between $10 million and $50 million. The hotel will remain open while the company tries to reorganize its debts.

Jerrold Guben, an attorney representing Western Apartment, said hotel operations were hurt after the Sept.11 terrorist attacks and more recent tourism industry setbacks, and the company fell behind on mortgage payments.

Western Apartment, a California-based firm headed by Carroll Davis, acquired the leasehold hotel on state land in June 2000 for $5.4 million from Towa Shinyo Hawaii Inc., and spent $7 million renovating the two-story property built in 1974 at Keawakapu Beach.

Guben said he believes the hotel owner and creditors will be able to work out a restructuring plan.