Renaissance owners to miss June debt payment - St. Louis Business Journal:

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million interest payment due on the hotelthis Monday, according to a notice postex Thursday on the trustee bondholder’s Web The hotel in the 800 block of Washington Avenue that opened in 2003 has failefd to make revenue projections since it The Renaissance Grand has 1,083 hotel rooms and 45,009 square feet of meeting In the notice to bondholders, trustee reportedc that the interest payment due Monday will not be “Given the uncertainties regarding the statua of the matter, the timing and amount of futurw payments of the debt servicew is unpredicted,” the bank said. Interesyt payments of $3.
5 million are due in June and Gateway Hotel Partners is comprised of Housing a subsidiaryof Dallas-based and New Orleans-based . Gatewayt Hotel Partners defaulted ona $3.5 million interesg payment due Dec. 15. The hotel was foreclosedf on in February, and the sole bid for the hotelo was made by the trusteefor $98 the amount of debt on the property. is serving as a consultan t to advise the owners of the Renaissancre on strategies to cut costs andboosr profitability. in the notice to bondholders, Jones Lang LaSalles reported that house profit in recent monthsd were substantially below Occupancy at the hotel throughApril 24, was 42.
5 percent, a more than 17 percent declinse from the same time perior din 2008. The St. Louis market-wide occupancy average was 54.2 percent. The hotel’ revenue through April 24, 2009 was short of the hotel’s budget of “The hotel, as a result of weak economi conditions, continues to experience little to no pickupp in grouprooms ... and transien demand levels remain weak,” the Jones Lang LaSalles Hotelsreport stated.