PERRY, Iowa (AP) — The historic Hotel Pattee in Perry has abruptly closed, but city officials hope it will reopen soon. Perry City Administrator Butch Niebuhr told The Des Moines Register the plush 40-room boutique hotel closed after Raccoon Valley Bank took possession. The bank held the loan on the property. Niebuhr says an interim hotel management company will likely operate the 100-year-old hotel until a buyer is found.

Howard and Roberta Ahmanson gave the hotel a $10 million restoration before reopening it in 1997, but it lost money and closed in 2006. Hotel Pattee LLC bought the hotel in 2008 for $1.5 million. The city and Perry Economic Development Group also agreed to pay the company $150,000 annually for five years. Niebuhr says the subsidy ended June 30.