Hampton Inn Hotels In Fort Lauderdale|"Convention Center Hotel"

Source             :    hotelchatter.com
Category        :    Hampton Inn Hotels In Fort Lauderdale
By                  :    wakeandwander 
Posted By     :    Hotels In Fort Lauderdale

Hampton Inn Hotels In Fort Lauderdale

The Metro Council voted unanimously Thursday to move forward on a plan for a publicly subsidized hotel at the Oregon Convention Center, sending the proposal to the Portland City Council and the Multnomah County commission. The Metro regional government also agreed to bring up concerns from competing hoteliers in negotiations with the proposed hotel's developers. The other hotel owners worry the subsidies could give the new hotel an unfair advantage.

Those hotel operators have called for a minimum nightly rate the hotel could charge, but Metro stopped short of describing a mechanism for ensuring the hotel doesn't undercut competitors. A rate floor like the one requested by hoteliers is unlikely, said Scott Cruickshank, executive director of the Oregon Convention Center. "We're working with Hyatt to make sure rates don't precipitate a decline in rates generally," Cruickshank said. Whatever comes of those negotiations would come in a final development agreement later this year. The hoteliers watched as The Nines hotel in downtown Portland was offered a $16.9 million loan from the Portland Development Commission, then put off its payments when the economy soured. At the same time, it discounted its rooms and undercut competitors.

"When there's a convention in town, that's good for everyone," said Tim Ramis, an attorney representing several downtown hotels. "But that's not every week of the year." Metro also added language specifying that its public funds would not be used for other projects, including a parking garage to be built adjacent to the hotel by StarTerra LLC of Portland, which also owns the land where the hotel is expected to be built. 

The proposal under consideration calls for Mortenson Development, a Minneapolis firm, to build a $198 million Hyatt Regency hotel. Loans and grants from the city, state and Metro would directly subsidize $18 million of the cost. Another $60 million would be paid for with revenue bonds issued by Metro, which would repay them using proceeds from a local tax on hotel stays. The bond amount is based on how much Hyatt, which would own the hotel upon completion, projects it would raise in lodging taxes.

If Hyatt doesn't meet its projections, the gap would be filled using lodging taxes raised from other local hotels -- another part of the arrangement that irks hoteliers. The Portland City Council and the Multnomah County Commissioners will likely take up the issue in September, but a date hasn't been scheduled.

Source : oregonlive.com/front-porch/index.ssf/2013/08/convention_center_hotel_metro_3.html