Tuesday, November 05, 2019

Hotel Industry Falters Just As Kansas City Opens New 800-Room Convention Center

Another sketchy project meets with horrific market timing as this biz takes a hit just when taxpayers are set to open shop . . .

Zero Hedge: US Hotel Industry Contracts The Most Since The Financial Crisis

Read more:

Moody's: U.S. hotel industry outlook downgraded

A newly released report from Moody's Investor Services cuts the company's outlook on the United States lodging sector to stable from its previous positive, reflecting decreased growth in revenue per available room. Additionally, the company reported that weakening occupancy growth is weighing on hotels.

10 comments:

Anonymous said...

Why the hell would anyone in their right mind book a convention in Killa' City for that matter.

Anonymous said...

^^^Same reason you still live here and post here all day long. Fucking idiot.

Anonymous said...

Oh Chimpy. Why so monkey mad? Lol

Anonymous said...

KC gets in another bad business. Why didn't we just build horse carriages or buy the newspaper. Would have made more sense.

Better yet, let the market decide if we need a new hotel.

Anonymous said...

God dang it shitty hall should commission anudder luxury hotel study!

Anonymous said...

Chimpys Luxury Hotel

Anonymous said...

You don't grasp the concept of "build in order to borrow".
Developers borrow the maximum possible amount to build something (for instance a Hotel, or a Zona Rosa, or Luxury Apartments), with the cooperation of gullible (i.e. bribable) City Government and shifty Bank Loan Managers, then spend the absolute minimum to build the "something", paying themselves hefty Management Fees as they do so.

After building their "something" the Developer sets up a wholly owned Subsidiary to manage it, then that Subsidiary assumes the entire debt load. If the "something" turns enough profit to pay the Subsidiary a management fee, that flows upwards into the Developer's pocket. If the "something" fails, the Subsidiary declares bankruptcy and everyone walks away, leaving the lenders, guarantors (the City) and probably Supply Contractors and Employees high and dry.

Do this enough times, and you can become wealthy, and maybe even aspire to high Political Office.

Anonymous said...

Is that why Trump is selling off properties.

Must be broke.

Retro ROCKER said...

The R.V.PARKS are full. And you see a few Rock and Roll tour Busses. This Hotel occupancy decline will get worse. The Missouri Tourists Traps in Branson are doing well. And Summer Time,at the Lake of the Ozarks THE hotels are busy ,There are to many Hotels Downtown. And Many visitors stay in the Suburbs And Drive into Kansas City for Intertainment.

Anonymous said...

Well the homeless have to have nice accommodations when winter comes. Why not empty hotels?