Chamberlin Hotel owners file bankruptcy to avoid forecloseure

The historic Chamberlin Hotel on Fort Monroe in Hampton narrowly avoided foreclosure Friday. The owners filed for bankruptcy hours before an auction forced by their creditors.

A crowd of Chamberlin fans stood at the courthouse steps when the scheduled auction was abruptly canceled. Few had the money to bid. All were worried about the grand old hotel, built in 1920 and overlooking the Chesapeake Bay.

“I read about it in the paper and I said I've got to see what happens to it, and hey, I brought a dollar," said Tom Crispell.

It's assessed at more than $5 million, but it's been closed since April. The Florida-based owners are trying to find investors.

“Money is always the issue, and needing the renovation it does, you just wish somebody with really deep pockets could come in and make it a really grand place, like it always was," said Marjorie Cochran.

Security on Fort Monroe since 9-11 has hurt the hotel, cutting down on tourism and contributing to the current financial problems.

The owners' broker, Tom Waltz, says the bankruptcy filing buys time to finalize a deal.

“In my mind I think it's ideal for a retired military housing complex, you know, independent living."

History buffs are hoping someone can keep the Chamberlin a hotel, with its 180 rooms and its history.

“A lot of people have had weddings there, honeymoons there, and I think there's a lot of interest in seeing that history remain a vital part of the community," said Susan Borland.

The Chamberlin Hotel is a registered national historic place and Virginia landmark.