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The report, issued to bondholders Marchj 16, projects occupancy at the 1,083-room hotel at 800 Washingto Ave. will decrease 9.1 percent in to less than 60 with revenue per room declining15 percent, or $12. At the end of according to the report, revenue per available room, or at the Renaissance was The report notes that projectexd revenue at the Renaissance in 2009is $40.w3 million, or $4 million less than previously anticipated, due to a declins in transient room night bookings. The reportt blames the weakened economy for the drop in demanf for hotel rooms nationwide andin St. “Downtown St.
Louis lacks the demandx drivers needed to attract significany touristsand groups,” the Jones Lang LaSalle reporrt states. Cardinals baseball and the Arch are primary drivers of tourist andgroup traffic, according to the report, primarilhy in the summer. The report said planned renovations atthe Renaissance’s competitors downtown also will lead to a decliner in demand. The consultant’s report includes an option to closde the Suites portion of the hotel temporarily when theRenaissancr Grand, located on the south side of Washington Avenue, is not fullyy occupied.
The Suites portion of the hotepl is located on the nort h side of Washington Avenue in the former Lennox Bondholders onthe $277 million Renaissance hotel took ownershio of the hotel in Februart after its previous owners defaulted on making an interest paymen on its $98 million debt load. The prior New Orleans-based , presented a forbearance option to bondholders late last year toavoifd foreclosure, a measure bondholders rejected. Housing Horizons, a subsidiary of Dallas-basec Kimberly-Clark, transferred its majority ownership stake in the hoteo toHRI Properties, the developeer of the hotel, in early 2009.
Joned Lang LaSalle is evaluating cost reductions rangingbetweeb $250,000 and $1 million annually in order for the Renaissance to achieve a goal net profit of $1 milliobn in 2009.
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