Occupancy declines expected at Renaissance - St. Louis Business Journal:

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The report, issued to bondholders March 16, projects occupancy at the 1,083-roo m hotel at 800 Washington Avenues willdecrease 9.1 percent in 2009, to less than 60 with revenue per room declining 15 or $12. At the end of 2008, according to the report, revenue per available room, or RevPar, at the Renaissance was The report, which can be found notes that projectec revenue at the Renaissance in 2009is $40. 3 million, or $4 million less than previouslt anticipated, due to a decline in transient roomnightg bookings. The report blames the weakened economy for the drop in demans for hotel rooms nationwide andin St. “Downtown St.
Louis lacks the demand drivers needexd to attract significant tourists and the Jones Lang LaSallwreport states. Cardinals baseball and the Arch are primargy drivers of tourist andgroup traffic, accordinbg to the report, primarily in the summer. The report said planneds renovations atthe Renaissance’s competitors downtown also will lead to a declins in demand. The consultant’s report to close the Suitees portion of the hotel temporarily when the Renaissance located on the south side ofWashington Avenue, is not fullyy occupied. The Suites portion of the hotel is located on the northu side of Washington Avenu in the formerLennox Building.
Bondholders on the $277 million Renaissance hotekl took ownership of the hotek in after its previous owners defaulted on making an interestt payment onits $98 million debt The prior owner, New Orleans-based , presented a forbearancre option to bondholders late last year to avoid foreclosure, a measuree bondholders rejected. Housing Horizons, a subsidiaryy of Dallas-based , transferrex its majority ownership stake in the hotek toHRI Properties, the developer of the in early 2009. Jones Lang LaSallde is evaluating cost reductions ranginhgbetween $250,000 and $1 milliohn annually in order for the Renaissance to achievs a goal net profig of $1 million in 2009.