Feb. 14—SEASIDE — Masudur Khan, a hotelier and investor involved with several projects on the North Coast, is suing his former business partners for $2.5 million.
In court documents, Khan and his Portland-based attorney, Edward Choi, claim his former partners violated operating agreements and failed to provide fair market value for several companies.
Until December 2021, Khan and the defendants were partners in projects in Seaside, including the SaltLine Hotel, the former City Center Hotel, the Inn at Seaside and the River Inn.
Khan, who received a salary as managing director of the SaltLine Hotel, was let go from the partnership in December 2021.
Acquisitions in Seaside
Khan moved to Oregon in 2009 when his wife, Taslema Sultana, received a job at Intel. At that time, he entered the hotel business in Seaside.
To fund his initial investments, Khan brought in former classmates and family members as partners.
Only one among the six people named in the lawsuit had any experience in the hospitality or hotel industry, according to the complaint filed in May and amended in December.
Doel LLC, one of the defendants named in the suit, was formed in June 2009 and acquired the Inn at Seaside Hotel.
The Inn at Seaside Hotel was successful, and Khan looked to expand. In 2012, he and his partners formed a separate company, Seaside Lodging LLC, to acquire the Royale Motel, which was razed and opened in 2015 as the River Inn at Seaside.
Khan and his partners formed City Center LLC in 2013 to acquire the City Center Motel, Seaside's oldest motel, which had opened in 1938. City Center Motel continued to run as a budget motel for several years until Khan decided to construct a new building on the site.
Construction of the new SaltLine Hotel began in September 2019 and continued through the coronavirus pandemic. Khan oversaw all of the construction, according to the complaint.
In July 2020, the SaltLine Hotel opened, with Khan as its managing director and a membership interest in City Center LLC.
Khan had a rising profile in hospitality. He served as the chairman of the Oregon Restaurant & Lodging Association and was named the association's lodging operator of the year in 2015.
In his complaint, Khan said he was abruptly informed in December 2021 that he would be terminated without cause from his position as managing director of the limited liability companies.
While he disputed the termination decision, Khan stated in the complaint it would be best if they "went their separate ways and ceased the business relationship, given the apparent disagreements and irreconcilable differences of opinion and interests between the members."