In an effort to stem a decade of losses – and the prospect of more red ink in the future – the Pugh administration hopes to refinance the city-owned Hilton Baltimore Hotel by taking advantage of historically low interest rates.

Under a plan approved yesterday by Mayor Catherine Pugh and the Board of Finance, the city will issue up to $330 million in new bonds, at interest rates of no more than 5.6%, to retire current bonds with up to 5.9% rates.

The lower interest rates, coupled with an expected new management agreement with Hilton Hotels and the elimination of the original bond insurer, are expected generate between $3 and $4 million in annual savings for the hotel, Steve Kraus, deputy director of finance, told the finance board yesterday.

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