Days Inn hotel on Security Blvd. to be auctioned

March 17, 1992|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

The Days Inn hotel near the Beltway on Security Boulevard will fall to the auctioneer's gavel March 30, after the partnership that owns the 170-room hotel failed to pay $7.99 million it owed The Bank of Baltimore.

The auction is set for 11 a.m. at the hotel. A. J. Billig & Co. will serve as auctioneer.

Bank of Baltimore Treasurer David L. Spilman said the bank would not comment on the decision to push the property to auction.

The hotel is owned by Security Boulevard L.P., said Emerson L. Dorsey, a lawyer who is working on the foreclosure for the bank. Neither Mr. Spilman nor Mr. Dorsey would identify the principals of the partnership.

The Days Inn is one of a large number of suburban hotels that have run into trouble in recent years. Over the past 15 months, one hotel in Timonium and two in Hunt Valley have gone on the auction block, while the Columbia Hilton filed for protection from creditors under federal bankruptcy law last year. The Sheraton Towson has been placed in receivership.

The Days Inn auction is also a sign of The Bank of Baltimore's real estate problems, which have come into the open since the top leadership of the bank was shaken up after insurgent stockholders ousted the former management.

Baltimore Bancorp, the bank's parent company, reported it lost $126.5 million in 1991, virtually all of which was a result of the new management's decision to write down the value of past real estate loans.

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