PERRY, Iowa — The historic Hotel Pattee in Perry has abruptly closed, but city officials hope it will reopen soon.
Perry City Administrator Butch Niebuhr said the plush 40-room boutique hotel closed after Raccoon Valley Bank took possession. The bank held the loan on the property.
Niebuhr said an interim hotel management company will likely operate the 100-year-old hotel until a buyer is found.
California philanthropist Howard Ahmanson Jr. and his wife, Roberta, spent $10million restoring the hotel. It reopened in 1997 but lost money and closed in 2006. Roberta Ahmanson is a Perry native.
Hotel Pattee LLC bought the hotel in 2008 for $1.5 million. The city and Perry Economic Development Group also agreed to pay the company $150,000 annually for five years. Niebuhr said the subsidy ended June 30.
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