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Friday, August 24, 2007

Unspeakable B.S. of the Year (So Far)

About the Portland Convention Center Hotel scam:

[T]he financing model under consideration for a headquarters hotel will require the hotel to pay for itself. A hotel industry consultant has projected the hotel will generate $11 million per year in net operating income, starting in the hotel’s first stabilized year of 2014.
Now there's the pure, unadulterated version of bovine manure. It is unsullied with any filler of truth. And it was part of a larger pile. Our friend Mr. Stanford, to whom it was addressed, calls it like it is here.

Comments (8)

A PDC consultant said that a 600-room headquarters hotel would bring 104,000 new room-nights to the Portland area. If the hotel got all of those new room-nights, then it would run at 47% occupancy. If it can bring 25% of room rents to the bottom line (a BIG if) then to make $11 million in NOI it needs to gross $44 million from rooms. (And it's hard to do this at less than 50% occupancy.) So in 2014 it needs to average $400+/night from the rooms it does rent. I'm not seeing that as likely, but maybe the HQ hotel will have attractions that the Benson, Hilton, Heathman, Lucia, DeLuxe, and Paramount all lack.

So much funny.

The idea offered by David Woolson that the convention center has "operated in the black" over the past four years (because they managed to cover the red with tax money) is hard to even describe without very foul language.

But here goes,

You crooked, lying, scheming, tax funded, pathetic piece of stuff. Your pitch about how the CC operates in the black and how the hotel would pay for itself is the stuff of con men and charlatans. Moreover, with that kind of extreme public deceit emerging from you and Metro there is little doubt the fix is in. So try and keep your insults to a minimum.
Boy, should you ever be fired. Unfortunately the club you belong to is chuck full of other snakes.

If what Mr. Woolson says is true, then I would think that the private sector would be lined up to make that sort of NOI, assuming the overall investment is in line with cap rates today. Why doesn't Mr. Woolson put together a private investment group (with his money invested) and make this "great" deal happen! Maybe the Bragdon brothers could participate too!

A hotel industry consultant has projected

hoo boy.

Dear Citizens,

Based on extensive research by a "hotel industry consultant", we're confident that the new hotel will become profitable in seven years.

If it doesn't, well, blah blah unforeseen factors blah blah economic downturn blah blah blame others blah.



Hotel Industry Consultant -= John Ashforth lackey

Agian - if this thing is generating so much income why do the taxpayers need to finance it? I am tired of us throwing good money after bad on the convention center.

However, the CC Hotel is an unstoppable force much like the sewage being pumped into the Willamette.

"A hotel industry consultant has projected the hotel will generate $11 million per year in net operating income, starting in the hotel’s first stabilized year of 2014."

Okay say this hotel doesn't make what it is suppossed to then do they arrest the hotel for what theft?


The consultant is a hotel industry expert, right? Good as gold.

I'm sure the Metro Board would be willing to sign personal guarantees to pay back any losses sustained by the public if the expert's predictions don't pan out.

If that's too much to ask...how about they simply agree to work without salary and benefits if the expert's predictions fall short?

Better yet, how about the entire PDC staff work for free to help fund the gap?

Wow they can build and turn a profit on a hotel in seven years. Why they must be one hell of a grope of genius. /sarc

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