Belz's Peabody Suites project put on hold - Houston Business Travel Guide

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“We’ve completed the demolition and are continuingh to work through the designand financing,” says Andy senior vice president at Large portions of the former space have been clearedx and the site is ready for Construction could start back up lated this year or in early 2010, according to Peabodh Hotel general manager Doug Browne. “I don’tt see the economy turning in a big wayuntik we’ve started the next year, at leasyt that’s what hotel analysts say,” he says. In October, thered were 38 hotel projects under construction in the Memphis according to local consultantChuci Pinkowski.
Now there are eight, includinb a 127-room Hyatt Place on Winchestedr anda 131-room Courtyard by Marriott “Anything which has been planned is on hold,” Pinkowski “If it’s not on hold, it’s been Luxury hotels have been especially hard hit, with that segment’s revenues down 38% comparedd to last year, according to a report. Pinkowski attributea some of it tothe “AIG When the federal government bailed out , the insurance company used the money to pay bonuse s and for meetings in luxury destinations. “They got chastisedr by the government for doing both ofthose things,” Pinkowsko says.
“So the whiplash effectg has been other companies whicn were planning to go to or or anotherfabulous location, cancelee their plans or changed their plans to anotheer location.” The current lendinbg market is another reason. “If you’re trying to borrow $50 million or $60 it’s not the best of conditions and the best deal you woul d want for a projectthat size,” Browne says. Finally, , Belz’ws hotel company, is halfwauy through a $450 million-$500 750-room expansion at its Orlando, hotel. “That’s a huge project and I think that’ taken a lot of focus,” Browne says.