Foreclosed Petersburg hotel to be auctioned off Wednesday

By: Jeremy Slayton | Richmond Times-Dispatch
Published: August 24, 2009

In the market for a 120-room hotel? If so, one off Interstate 95 in Petersburg is available -- for the right price.

The independent hotel at 405 E. Washington St. is in foreclosure and will be auctioned off Wednesday by National Commercial Auctioneers.

"It's basically been mismanaged. Obviously, the property is being foreclosed on, so they're not paying their bills," said Fernando Palacios, regional vice president for Tulsa, Okla.-based National Commercial Auctioneers. "The property is still open and they're still taking reservations. People are still staying there; it's not like it is closed down or shut down."

Devasha Hospitality LLC purchased the hotel on Oct. 15, 2004, for $2.5 million.

According to Petersburg real estate records, the 2009 proposed value of the land and building is $2.7 million. There is a $153,093 lien on the property and the building is being auctioned "as is."

A man answering the phone at the hotel last week refused to comment regarding the foreclosure and upcoming auction.

The 160,301-square foot hotel sits on 3.68 acres on East Washington Street off Exit 52 -- a gateway into downtown Petersburg and about a mile away from the I-95 intersection with Interstate 85.

The building was originally built in 1965 and includes the Good Tymes restaurant, which is currently closed, according to a recent appraisal conducted by Cushman & Wakefield.

Also in the appraisal, the guestrooms are described as being in average condition and include a remote-control TV, a phone and a lounge chair. The hotel property includes a pool and a banquet room.

Because the property is no longer subject to a franchise agreement, a buyer can convert the property into any hotel chain or remain as an independent hotel and not be locked into any hotel franchise, Palacios said.

Contact Jeremy Slayton at (804) 649-6861 or jslayton@timesdispatch.com.