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« Security theater | Main | Kaplan: Not dead yet »

Nov 20, 2010

Comments

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Roch101

Why doesn't Wyndham just underwrite it? Heck, they could just write a check for the whole thing if they wanted to.

Ron

If the lame duck congress extends it, the hotel is still alive. If not this hotel will not get built unless it gets some sort of other financing. Once the GOP takes over the house in January, say goodbye to the American Recovery Investment Act. If Kaplan and comapny are serious about seeing this hotel get built, they'll find a way no matter what happens. But I agree Wyndham could cough up more money for this project if they truly believe it will be successful.

Michele Forrest

This has probably been covered, but I don't recall the answer: Do we really need another hotel in downtown Greensboro?

Ed Cone

Wyndham does not build or own hotels; it franchises them in the low/mid-market range and manages the fancy ones.

Tony Wilkins

Timmy...come out come out wherever you are (to the tune of Robert De Niro).
If this is such a viable plan why are there no takers?

Roch101

"We spent $71 million on capital expenditures, equity investments and development advances during the first half of 2010 including $63 million on the improvement of technology and maintenance of technological advantages and routine improvements and $8 million of equity investments and development advances. We anticipate spending approximately $175 million to $200 million on capital expenditures, equity investments and development advances during 2010." -- Wyndham Q3 report

While Wyndham does not build their own hotels, I am wondering if they might underwrite the construction of the Greensboro hotel through an equity investment or advance.

Ed Cone

Nothing in those numbers suggests that Wyndham is in the business of making investments at the scale the downtown developers need.

Wyndham spent $8 million on equity investment and advances over the first two quarters of 2010 (for the whole company, not just hotels), $4 million for the comparable period of 2009.

Slow years, to be sure, but the stated plan going forward is to increase the proportion of earnings from fee-for-service businesses, not to start doling out big money on high-risk projects.

Roch101

Naysayer.

RecycleBill

To date, has anyone other than myself addressed concerns about the cost of expanded water and sewer services to a downtown hotel and who will pay for that?

After all, most of those pipes have been in the ground for about 100 years or so.

Ed Cone

Many substantial buildings have been built downtown in the last 40 years, without apparent strain on the system, so why should this project present an issue? Would the incremental increase in usage really be so dramatic?

RecycleBill

Most cities across the USA currently face nightmares because their water and sewer systems are almost all antiquated and on the brink of failure. For many cities the cost of necessary upgrades threatens to bankrupt city coffers and there's no reason to believe Greensboro has dodged this bullet. After all, you work downtown, have you seen miles and miles of pipes being dug up and replaced?

All I've seen is the occasional spot repair. And while Greensboro does sometimes use the less invasive technique of pushing a plastic liner inside of existing cast iron, concrete or terracotta pipes, that technique reduces flow rather than increasing flow.

The fact that "Many substantial buildings have been built downtown in the last 40 years" actually adds to the concerns that our water and sewer systems aren't up to par for something like 200 showers, toilets, sinks, dishwashers, kitchen garbage disposals and the washing of thousands of dishes daily. On busy days this one motel will require more in water and sewer services than half of the existing downtown buildings combined.

Is our system big enough to handle the increased load? I don't know but I think it's a question that should be answered publicly before construction begins.

And when one considers that the minimum upgrade necessary would extend from downtown to the nearest sewer treatment plant at a cost of something more than $2 Million Dollars a mile I would think that everyone who lives in Greensboro might share my concerns.

RecycleBill

No news is good news?

Michele Forrest

I've never thought of that, Billy. It's an interesting question. And I'm still waiting for someone to answer my question: "Do we really need another hotel in downtown Greensboro?"

Billy The Blogging Poet

"Do we really need another hotel in downtown Greensboro?"

No, but when it goes belly up it will make a great homeless shelter.

Michele Forrest

We could use one of those.

sean coon

capitalism allows developers to make money upfront for a project that is destined to fail. pass the apple pie.

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