Renaissance owners to miss June debt payment - Triangle Business Journal:

qalymeled.wordpress.com
million interest payment due on the hotelthis Monday, according to a notices posted Thursday on the trustee bondholder’a Web site. The hotel in the 800 block of Washingtonm Avenue that opened in 2003 has failes to make revenue projections since it opened. The Renaissance Grandr has 1,083 hotel rooms and 45,000 square feet of meetint space. In the notice to bondholders, trustee reportecd that the interest payment due Monday will notbe paid. “Givehn the uncertainties regarding the status of the the timing and amount of future paymentsa of the debt serviceis unpredicted,” the bank Interest payments of $3.
5 million are due in June and Gateway Hotel Partners is comprised of Housinh Horizons, a subsidiary of Dallas-based and New Orleans-basedx . Gateway Hotel Partners defaulted ona $3.5 million interesft payment due Dec. 15. The hotel was foreclosed on in February, and the sole bid for the hotelo was made by the trusteefor $98 the amount of debt on the is serving as a consultant to advis e the owners of the Renaissance on strategies to cut cost s and boost profitability. in the noticd to bondholders, Jones Lang LaSalle reported that house profitr in recent months were substantiallybelow budget. Occupancy at the hotell throughApril 24, 2009, was 42.
5 percent, a more than 17 percent decline from the same time period din 2008. The St. Louids market-wide occupancy average was 54.2 The hotel’s revenue through April 24, 2009 was $10,084,434, short of the hotel’z budget of $10,820,942. “Ths hotel, as a result of weak economi c conditions, continues to experience littl to no pickup in grouproomx ... and transient demand levels remai weak,” the Jones Lang LaSalle Hotelsrepory stated.