Tuesday, February 20, 2018

Pere - All the Signs Were There But Ignored By Ardis and Council - Posted Jan. 26, 2009

Hotel Vacancies at 20 Year High

The WSJ reports today, "The downturn in the U.S. hotel industry is becoming so acute that it has thrust the sector into crisis, leaving vacancies at a 20 year high and putting many properties in danger of missing payments to lenders".

With the Civic Center preparing for a 25% decrease in business this year and two local hotels up for sale (they were a while back and I haven't heard they have been taken off the market) and the city putting the taxpayer on the potential hook for $40million dollars in General Obligation Bonds to support a renovation and addition of a hundred beds downtown in the Pere Marquette location, this report does not paint a pretty picture for Peoria.

"Among commercial real-estate categories, the hotel industry rises and falls the most dramatically in reaction to economic cycles. That's because, unlike office buildings and shopping malls with long term leases, hotel occupancy and rates change on a nightly basis as customers come and go at will."

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