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.
- 3,235
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.”
“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.”
- 5,433
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.
- 622
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...
- 8,904
Bondholders take ownership of Renaissance hotel
http://stlouis.bizjournals.com/stloui ... mentAnchor
Is this a good or bad thing? thoughts?
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"
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.
- 10K
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.
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)?
- 516
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 
- 10K
The storm that just blew through downtown did some MAJOR damage to several floors on the eastern facade of the suites building (the former Lennox Hotel). I took a pic, which I'll post when I get home.
- 1,364
They've already repaired a large portion of the damaged siding. At this pace they will be all ready to go before the All Star Game.
- 8,155
So it looks like there still are negotiations with a potential buyer for a sale of both the Ren Grand and the old Ren Suites (Lennox) across the street, but if that doesn't work out then others appear to have expressed interest in buying just the Renaissance Suites. Either way, it looks like downtown may get the now shuttered Suites back open.
http://www.stltoday.com/business/local/ ... 64db2.html
http://www.stltoday.com/business/local/ ... 64db2.html
- 3,235
Would like for Lennox to reopen as a hotel or residential apartments.
- 933
I was saying the same thing the other day. The building would be perfecto-mundo for some super tight apartments. I would totally live there.
- 3,235
Looks like a good week for the Renaissance Grand. Yesterday it was announced that a new owner is buying the hotel and rehabbing all rooms and common areas.
Now the Renaissance Suites aka Lennox Hotel has a buyer and will turn the building into a Marriott Courtyard.
Great news for downtown.
http://m.bizjournals.com/stlouis/blog/2 ... twt&r=full
Now the Renaissance Suites aka Lennox Hotel has a buyer and will turn the building into a Marriott Courtyard.
Great news for downtown.
http://m.bizjournals.com/stlouis/blog/2 ... twt&r=full
- 8,904
The Grand is REALLY showing wear and needs some serious modernizing. The empty Suites is just sad to walk past. Great news indeed!!!
