The New York Times is reporting today that there is a renewed interest in the hospitality industry by private equity firms. As the over 50% fall in the valuations of hotels has been widely documented and as the deal flow in the hospitality industry ground to a halt, Evansville’s aspirations to attract an investor/developer to build a Convention Hotel adjacent to the new Arena and the Centre was frozen in its tracks.
The recent Initial Public Offering of the Hyatt Hotels Corporation that raised substantial levels of cash may prove to be the salvation of the Downtown Evansville project as at least one of the bidders on the Hotel, Woodruff Hospitality is on record as having discussions with Hyatt. In down times “cash is king” and Hyatt has the resources available should Evansville prove to be a worthy market for one of their flagship lines. Hyatt’s cash position coupled with the appetite for lodging deals by private equity may just be the catalyst needed to resurrect the Evansville Convention Hotel from its coma.
The City County Observer stands by its previous articles on the costs to develop a 220 room Downtown Hotel along with the valuation analysis that has been previously published. We are encouraged that value is once again being recognized in the hospitality industry and anxiously await the opening of the bids by Browning, Woodruff, and White.
http://www.nytimes.com/2010/12/05/business/05hotel.html?pagewanted=1&hpw
“Ambitions”?
“catalyst”? “Good news”?
Uh… Come again?
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