Not pencilling out
A reader in Texas writes:
I thought I'd pass along a little "market reality" on what things might look like when Portland gets its own stupid HQ hotel--It's going to be a little difficult paying of that quarter billion of public debt at a hundred bucks a night.hotels.travelzoo.com/lodging-hotels/589330
hotels.travelzoo.com/lodging-hotels/586637
San Antonio used empowerment zone bonds -- creating jobs for low and moderate income inner city residents -- for its "Grand Hyatt." Enjoy!
| Posted at 7:51 AM | Permalink |
|
Comments (4)
That's actually a pretty darn good price. May have to head down to TX to check it out!
Posted by PJB | May 27, 2009 8:20 AM
Where was the Grand Hyatt when I was there for my cousin's wedding? Everything else on the Riverwalk was >$200.
Posted by Shelley | May 27, 2009 9:24 AM
Doesn't matter - If they don't make a profit, the operator won't have to pay toward the debt the way they'll write it up.
Of course, the operator determines profit, so be prepared for a long wait for debt service.
Posted by Steve | May 27, 2009 11:17 AM
Agreed, Steve: it's always amazing how the books can be serviced to show that the venue never made a profit, no matter how many dumptrucks full of cash you watched leave the back door.
Posted by Texas Triffid Ranch | May 27, 2009 2:05 PM