Chalk up today’s low interest rates with breaking, at least for now, the cycle of losses that have plagued Hilton Baltimore, the city’s financially-fraught venture into the hotel business.
This summer’s refinancing of $300 million in bonded debt is expected to save the hotel $6 million a year, an official told the Board of Finance on Monday.
Combined with a new agreement with Hilton and reduced insurance premiums, the city entity that owns the building should be able to avoid raiding the hotel occupancy tax (HOT) or other city reserves to cover its bond payments, deputy finance director Steve Kraus says.
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