Eric Richardson [Flickr]

Plans will move forward to make the Kyoto Grand a Doubletree after a settlement between the property's owner and its major lender.

DOWNTOWN LOS ANGELES — The owner of Little Tokyo's Kyoto Grand Hotel and Weller Court shopping center this week filed a motion to exit bankruptcy proceedings after reaching a settlement with its major lender on the properties.

That move would pave the way for the hotel to become a Doubletree property, though it appears the property would keep its Kyoto Grand name. Doubletree's list of upcoming hotels shows the hotel as the "Kyoto Grand Downtown Los Angeles - a Doubletree hotel."

Beverly Hills-based 3D Investments purchased the hotel and shopping center in 2007 for $54 million. It placed the structures into Chapter 11 bankruptcy proceedings in July of 2010 after lender First-Citizens Bank & Trust started the foreclosure process.

Under the terms of the settlement, which must still be approved by the bankruptcy court on March 29, the owners will pay approximately $6 million toward the $44 million loan and accrued interest. $200,000 will go to Seville Gateway Investments, the Torrance-based group that the bank tried to sell the property to in October. Maturation on the loans will be extended to December 31, 2014.

The hotel opened in 1977 as the New Otani. The hotel's 2009 occupancy and average room rate of 51.5% and $104.82 were well below the averages for Downtown, which for the year were 61.8% and $133.7.