Commercial Observer reports that the owners of the East Houston Hotel have been taken to court by a Connecticut-based company for allegedly defaulting on a $2.5 million loan. Knighthead SSRE REIT, Inc. filed the lawsuit in New York State Supreme Court April 6. Records show that Soho New York Lodging LLC bought 151 East Houston St. for $4.5 million in 2005. According to court documents, the hotel operator borrowed about $2.4 million in January of this year. More details here.