urbanSTL

I'd hate to see the Renaissance closed and empty again. 20 years from now it'll be on another one of those "crumbling landmarks" lists.

shopgirl10 wrote:Remind me why the Roberts need to build a hotel right around the corner if the Renassiance cannot fill its rooms? Doesn't this dilute the market even further?

The downtown hotel market as I understand it is doing fine. It is the tremendous debt burden on the Renaissance Grand that is causing the problem. When was the last time we saw a hotel close downtown?

I dont think there is any talk of closing it is there?

I can' t seem to copy the link - but the Post is reporting that the hotel will indeed be foreclosed on Feb 2 (I think that date's right).... very bad news



could someone post the link.

markofucity wrote:guys - I gotta say it - things don't look too good for the city right now. AB. BPV. The Renaissance going Belly Up. I know everyone is in a downturn but I've lost my optimism. I really have.

^ Oh no, just what will we do?!? Should we sob? Group hug?



This is just natural movement in the economy. Things should pick back up in 2010. Until then, hold on and try not to get too excited.



More info here: http://www.iht.com/articles/2009/01/12/ ... /12bis.php

innov8ion wrote:This is just natural movement in the economy. Things should pick back up in 2010. Until then, hold on and try not to get too excited.

I agree with the first two statements, and I think the third statement is good advice for anyone to follow in 2009.



St. Louis, and the United States for that matter, have faced far worse challenges in the past and persevered, so I have every reason to believe our city and nation will rebound from the current economic downturn, maybe even next year...



Or think of it this way: Between an economic rebound, the synchronization of traffic signals at all major city intersections, and successful seasons for the Blues and the Rams, I'd be more than willing to put the little dab of money I have on the first thing on that list happening first.



Back to the Renaissance Grand, do we really know yet how the impending foreclosure would impact operations, at least in the immediate future?



It'll also be interesting to see whether the Hotel Indigo and the Embassy Suites at The Laurel proceed, although the RG's troubles aren't directly related to overall downtown occupancy rates as previously stated.

I'm not trying to be overly dramatic and I realize that the economy will bounce back eventually (2010 is a good guess). But I'm seriously down on our prospects - and I've been a cheerleader for our prospects for the last ten years.



i think the vote against the metro tax hurt the most - it just reaffirmed in my mind the notion that St. Louis really is bound by a provincial mindset. .. you could react to the downturn in two ways: (1) dig in your heels and refuse to pay for anything new or (2) fund bold new infrastructure that will (hopefully) position your city to boom when the economy gets back on track. St. Louis chose the former. California is funding stem cell research and building high speed rail. We're trying to kill stem cell research via a constitutional amendment (again) and voting against the meager rail system that we currently have. which state will be the leader in the future?



i don't know - I'm rambling. But it sure seems like st. Louis keeps losing major companies (ag edwards, AB, TWA, famous barr etc etc etc ) and I can't remember the last one we've gained. The airport is a shell of its former self. .... do you guys really think we're going in the right direction here?

copy that post and start a new thread.

Good idea Moorlander. I started a new thread in Urban Living to discuss what investments Missouri can make in itself for a brighter economic future. Something worth discussing. I can understand MarkofUCity's discouragement. Of course, this economic cycle is effecting the nation & the world, not just St. Louis. But, being prepared for the next up cycle is a good topic. Having said all that, the Ren-Grand problems are related to a tangled debt situation that was doomed to fail. Not really because of the economy or management of the hotel. Or InBev, etc.



If anyone finds out if the Ren will continue to operate under its new owner (the bank for now), please update us. Rennaisance/Marriott has not gone belly up, just the financing on this building. Or that is how I understand it.

Charles Jaco said last night that it will continue to operate, at least until a new owner is established. There is supposed to be a report out this morning detailing the feasibility of staying open for the long term. I really can't imagine the hotel shutting down. With a readjusted debt load, I think the RG will be OK.

From the biz journal article this week...



“We want to make clear that it’s the bondholders' intention that the hotel remains open and the operations continue uninterrupted,” Blase said. “Marriott is going to continue to manage the hotel, and it’s business as usual. There is no change in management or service levels as a result of the foreclosure notice.”

Downtown2007 wrote:From the biz journal article this week...



“We want to make clear that it’s the bondholders' intention that the hotel remains open and the operations continue uninterrupted,” Blase said. “Marriott is going to continue to manage the hotel, and it’s business as usual. There is no change in management or service levels as a result of the foreclosure notice.”

Thanks for posting that. It's consistent with everything else I've heard about the Renaissance Grand, and it's a bit of good news for now.

Shutting the hotel down would seem to put the bondholders in a worse situation. At least with the minimal amount of operating income the hotel can at least cover the expenses of the building just standing there.

It'd be great if more details were available because I don't quite understand why a bondholder would not hold in this environment? I'll guess that they have an arrangement to catch something at the other end of the foreclosure.

The bondholders foreclosed because the hotel missed an interest payment. Basically, the bonds are junk. Now, the bondholders directly own the hotel. They are going to sell it because bondholders are not typically in the business of direct hotel ownership.

Going to auction today. There really hasn't been a peep about any potential buyers. Any guesses or dreams? Guess we'll know in a few...

Bondholders take ownership of Renaissance hotel

http://stlouis.bizjournals.com/stloui ... mentAnchor



Is this a good or bad thing? thoughts?

Good thing...

because they can sell it off to a company that wants to manage it - "correctly" or "better"

So, they bought their own debt? I guess they will sell it when the economy picks up, because I doubt the bondholders would want to own the hotel long term.

Moorlander wrote:Bondholders take ownership of Renaissance hotel

http://stlouis.bizjournals.com/stloui ... mentAnchor



Is this a good or bad thing? thoughts?

I would take it to mean that no one else wanted to buy it.

no one else wanted to buy it

. . . for that price.

Even if it sold for a dollar, you'd have to make the payments on the debt, right? I wonder what is preventing debt restructuring (bankruptcy)?

Matt wrote:Even if it sold for a dollar, you'd have to make the payments on the debt, right? I wonder what is preventing debt restructuring (bankruptcy)?

If there was a bankruptcy or some other sort of debt restructuring, the bondholders could have ended up with zilch. Now that they've bought the hotel, they can either sell it and probably end up with fifty cents or so on the dollar for each outstanding dollar of bonds or continue to own the hotel and use profits to pay back the bondholder investment (albeit at a less aggressive pace than under the original terms of the bonds).

Correct me if I am wrong.. but these ARE the bond holders. There is NO bank involved, so no such thing as bankrupty for them. It is like an investment with many different people (bond holders) So these people invested the money, and expected a return. Well now they are stuck with a hotel