Perry Hospitality Inc. will take over management of the hotel on July 19
Perry Hospitality Inc., the management company established in April to oversee the operation of the Pattee Hotel and La Poste, will officially assume those duties on Tuesday when Perry City Council approves a liquor license for the business.
Perry Economic Development Inc. (PEDI) managed the Pattee Hotel and La Poste for the 15 months following the purchase of the properties. Perry Hospitality Inc. will now assume management responsibilities under a lease agreement with PEDI. Ownership of the properties is expected to transfer from PEDI to the City of Perry in the coming months.
“We so appreciate the great partnership between the City of Perry and our business community in positioning these key properties as centerpieces of our community experience for years to come,” said Tom Burkgren, spokesperson for Perry Hospitality Inc. “The generosity of so many in our community, along with the tireless efforts of the organization and Perry’s Economic Development Committees, has been humbling to experience.
The new ownership and management agreements are aimed at ensuring the long-term stability and sustainability of the 108-year-old hotel at the center of Perry’s economy and ending the ownership carousel that became a pattern after the Ahmansons . ripped off stakes and closed the hotel in 2006.
The hotel changed hands in 2008, 2013 and 2018. When Maxwell Hospitality LLC, which bought the Pattee Hotel in March 2018 and La Poste in January 2019, began looking to sell the properties in May 2020 but no buyers property was found, city leaders and PEDI members formed a committee to examine other ownership options for downtown landmarks.
The feasibility of purchasing the two hospitality venues through a public-private partnership opened up when Perry City Council pledged $650,000 for the project on February 1, 2021, quickly followed by commitments to approximately $600,000 from PEDI and the Wiese Foundation.
A donation of $500,000 from Osmundson Manufacturing Co. in March 2021 gave further impetus to fundraising. Within six weeks, some $2.35 million was secured for the purchase of the properties, and the purchase was finalized on April 1, 2021.
The hotel was appraised in 2017 at around $4 million. His earnings in 2021 were $1.2 million.