Lord Baltimore Hotel to go into auction pool

August 06, 1992|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

The Federal Deposit Insurance Corp. will put the Radisson Plaza Lord Baltimore Hotel into a nationwide pool in an auction of bankrupt properties this fall, hoping that it will bring more visibility and higher bids than have the three unsuccessful bids to sell the hotel.

The 440-room downtown hotel remains open and has even turned modestly profitable since the FDIC took over in January. The hotel no longer has any debt, said Rick Guttenberger, the hotel's general manager. Its occupancy rate is projected to be 56 percent this year, he said, up from the 50 percent anticipated in the hotel's budget.

The FDIC outbid one other interested bidder to buy the hotel for $6.85 million at a January auction. That auction was scheduled after the developers who renovated the hotel in the mid-1980s defaulted on a loan that had grown to $22 million and the New York thrift that owned the loan was taken over by the federal government.

The FDIC tried to sell the hotel in two sealed-bid auctions this summer but both times rejected all bids.

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