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Bank Seeks Foreclosure and Possession of the 125-room
Days Inn in Mystic, Connecticut

By Joe Wojtas, The Day, New London, Conn.McClatchy-Tribune Regional News

Dec. 21, 2011--MYSTIC -- A second Route 27 hotel is now in financial trouble.

The bank that gave a $6.1 million mortgage to the owners of the Days Inn is now seeking foreclosure and possession of the 125-room hotel and restaurant, according to documents filed in Stonington Town Hall.

Also this week, a trust filed documents that show the ownership group of the now-closed Ramada Inn has defaulted on a bankruptcy agreement.

Both hotels also owe large back taxes to the town. Sonu LLC, which owns the Days Inn, owes the town $54,688 in back taxes. That will increase to $91,188 in January. Tax Collector Gisela Harma said Sonu had agreed to pay the tax bill by the end of this year.

Whitehall Avenue LLC, which owns the Ramada, owes the town $177,966. By next month that amount will have grown to $220,000.

Sonu took out the mortgage for the Days Inn, at 55 Whitehall Ave., from Home Loan Investment Bank of Warwick, R.I., in April 2008.

The bank has filed a lis pendens in Town Hall, which is a notice to those searching the title for the hotel that there is a lawsuit involving the property. This makes the property less attractive to potential buyers and banks.

The lis pendens states the bank is seeking, among other things, to foreclose on the property and take possession of the hotel and its contents.

Sonu LLC principal Bharat Patel, who listed an Albertson, N.Y., address on his 2008 mortgage, could not be reached through hotel employees Tuesday. The hotel remains open.

Documents filed in Town Hall this week also show that Whitehall Avenue LLC, the group that owns the Ramada, has failed to pay $15,000 in monthly installments to a trust set up by a bankruptcy court agreement.

The group also failed to pay its back taxes by Aug. 1, as specified in the agreement. The agreement specifies that a foreclosure can be granted if there is noncompliance with the agreement.

The Ramada's financial problems became public last December when Connecticut Light & Power shut off power to the 150-room hotel for nonpayment of an $88,000 bill.

Power was restored four weeks later, and the hotel reopened.

CL&P again shut off power in June because of an unpaid bill, this time bringing to a halt a zombie movie shoot and delaying the opening of a new restaurant in the building.

The Savin Rock Roasting Co. restaurant, located at the front of the hotel, continues to operate.


(c)2011 The Day (New London, Conn.)

Visit The Day (New London, Conn.) at

Distributed by MCT Information Services

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