The Bank of Baltimore bought the Days Inn hotel in Woodlawn at auction yesterday for $4.7 million, closing the books on a $7 million loan to a group led by former Washington development titan Dominic F. Antonelli Jr.
The 170-room hotel attracted some other bids from a small group that gathered outside the hotel for the auction, but none came close to the $7.99 million the bank was owed when it filed for foreclosure Feb. 14.
The loan was made in 1986 by Metropolitan Federal Savings and Loan, a Bethesda thrift later acquired by Baltimore Bancorp, the parent company of the Bank of Baltimore. The Bank of Baltimore acquired the loan along with Metropolitan.
"I've known this location for a long time," auctioneer Jack Billig told the crowd before bidding began. "To be able to acquire 4.1 acres at [Security Boulevard and Whitehead Road, just inside the Beltway] is unheard of."
But the hotel has had problems with low occupancy.
A summary passed out at the auction showed that the hotel averages 51 percent occupancy, at an average nightly rate of $40.45. That would put yearly room revenues at $1.3 million, about one-sixth of the hotel's debt.
But Mr. Billig held out hope that a new operator could do a better job with the hotel. "The Social Security complex is the anchor for this area," he said.
A bank representative at the auction declined to comment on the company's plans for the property.
Mr. Antonelli, one of two general partners in the group that owned the Days Inn, filed for bankruptcy court protection last year.