
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 26, 1993                   TAG: 9305260026
SECTION: BUSINESS                    PAGE: B5   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Short

HOTEL FORECLOSED? NO WAY, OWNERS SAY

A notice of foreclosure on the Radisson Patrick Henry Hotel is a sign that the downtown Roanoke property's mortgage refinancing has been delayed, but it is not evidence of financial problems, its owners and operators said Wednesday.

Despite the notice setting a June 17 trustee's sale, it's not likely to happen, they said.

The legal notice, published Tuesday in the Roanoke Times and World-News, was filed by the Monterey Corp., a group of West Virginia investors that sold the hotel in May 1990 to Affirmative Equities Inc. of New York but kept the loan.

G. Franklin Flippin, a Roanoke lawyer who represents Monterey Corp., said the hotel's mortgage was in default, but Monterey is "hopeful that it can be worked out. We expect for it to be worked out somehow."

If the hotel is refinanced, he said, "it won't be a problem."

The hotel's manager, William Carder, said it was not in technical default because it has until the end of this month to pay the May installment.

He said Monterey Corp. was notified of a delay in refinancing until June 1. At that point, Carder said, the Monterey mortgage will be paid off.

He called the foreclosure advertisement "totally unreasonable and uncalled for." The newspaper ad was "improperly filed," Carder said.

Also, he said, the Patrick Henry is not in financial trouble.

"Business is great," he said, citing an 83 percent room occupancy rate so far this month compared with 74 percent a year ago.

by CNB