The beachfront Shilo Inn Seaside is being sold by a court-appointed receiver. At its peak more than two decades ago, Hemstreet’s Shilo Inn chain numbered nearly 50 hotels scattered across the West.

The Shilo Inn in Seaside is headed for auction as its owner Mark Hemstreet faces a mountain of debt owed to a California-based bank after facing financial troubles related to more than $20 million ...