BILLINGS, Mont. - A group of northwestern Montana investors bought the historic Northern Hotel at auction Friday for more than $2.2 million.
The Boone Trust Group, representing about 10 investors, submitted the only bid for the downtown Billings property, which included the 115-year-old hotel, its land and inventory and a parking garage. The auction was held at the Yellowstone County Courthouse and lasted less than 10 minutes.
Robert and Susan Van Riper bought the hotel, which was rebuilt in 1941 after a fire, in 2002, in part with loans from investors in the Boone Trust Group. After running into financial troubles, the couple filed for Chapter 11 bankruptcy protection last April.
A court-appointed trustee pushed the hotel into a Chapter 7 bankruptcy in September, closing the hotel and setting the stage for Friday's auction.
Billings attorney Joe Womack recently valued the hotel's land, buildings and inventory at $1.5 million. The Boone Trust Group had claims for more than $2 million against the hotel.
The investors will "take a couple of months to decide what to do" with the property, said Dennis Minemyer, a certified public accountant from Missoula who represents the group.
Minemyer said a construction company inspected the building a month ago and found it to be "sound."
