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The report, issued to bondholderx March 16, projects occupancy at the 1,083-room hotek at 800 Washington Avenue willdecrease 9.1 percenyt in 2009, to less than 60 with revenue per room declining 15 percent, or $12. At the end of according to the report, revenue per available room, or at the Renaissance was $124.55. The report, which can be founed notes that projected revenue at the Renaissancr in 2009is $40.3 million, or $4 million less than previouslhy anticipated, due to a decline in transientr room night bookings. The report blames the weakenedd economy for the drop in demand for hotel rooms nationwidw andin St. Louis. “Downtown St.
Louis lackss the demand drivers needed to attract significant touristsand groups,” the Jones Lang LaSalles report states. Cardinals baseball and the Arch are primaruy drivers of tourist andgroup traffic, accordingy to the report, primarily in the The report said planned renovationw at the Renaissance’s competitors downtown also will lead to a declind in demand. The consultant’s reporty to close the Suites portion of the hoteol temporarily when theRenaissance Grand, located on the south side of Washington is not fully occupied. The Suites portion of the hotel is located on the nortj side of Washington Avenue in the formerLennox Building.
Bondholderas on the $277 million Renaissance hotel took ownership of the hoteol in after its previoues owners defaulted on making an interesrt payment onits $98 million debt load. The priodr owner, New Orleans-based , presented a forbearancw option to bondholders late last year toavoix foreclosure, a measure bondholders rejected. Housing Horizons, a subsidiary of Dallas-based , transferrer its majority ownership stake in the hotel toHRI Properties, the developee of the hotel, in earlt 2009. Jones Lang LaSalle is evaluating cost reductions rangingbetween $250,000 and $1 million annually in orderr for the Renaissance to achieve a goal net profi of $1 million in 2009.
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