Foreclosure proceedings underway on Ramada airport hotel

With an unpaid balance of more than $6 million on a mortgage and loan, the Ramada Plaza by Wyndham Rochester Airport hotel is in foreclosure and a receiver has been appointed, according to court papers filed in state Supreme Court in Monroe County.

F.M. Butt Hotels Corp. defaulted on the $4,280,000 mortgage and a $1,600,000 equipment loan for the property at 911 Brooks Ave. in Gates, the documents allege, prompting Access Point Financial LLC, to seize the hotel.

The financially troubled property is to be sold in an attempt to recoup the balanced owed, according to a notice of pendency filed on Feb. 27 by Access Financial’s attorney, Barry M. Kazan of Thompson Hine LLP.

Access Point Financial claims there is a balance of $4,734,867.23 owned on the mortgage. That total includes $190,816.67 in interest, $180,116.67 in default-rate interest and $41,033.90 in late payment fees. Court papers show a balance of $1,825,065.86 on the equipment loan, which includes $79,444.44 in interest and $119,088.89 in default interest plus other fees.

Payments began on the mortgage and loan in July of 2017. The court filings say the last payment was made in January 2018.

Ramada is part of the Wyndham hotel family. But the corporate reservation center no longer lists the airport Ramada as part of the Wyndham chain, and reservations can no longer be made on the hotel’s website.

Wyndham’s corporate office did not immediately respond to a request for information.

F.M. Butt Hotels is owned by its founder, Naeem Butt, and he is the sole officer of the company. He bought the Ramada in May of 2017 and had plans to renovate the 289-room hotel that sits along the east side of Interstate 390, directly across from the Greater Rochester International Airport.

But business did not boom, and problems were encountered. In June a wing of the hotel was closed because of fire code violations, and the Monroe County Department of Health shut down the pool and kitchen due to code violations. The pool was not allowed to reopen, but the rodent problem and other code issues in the kitchen were addressed and the operations ban was lifted, according to health department spokesperson.

Reviews on the hotel website via tripadvisor.com, as well as on Yelp, detailed various complaints by guests.

On Feb. 8, Preferred Mutual notified the hotel that insurance would be canceled on Feb. 25 due to nonpayment of premiums.

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