The beautiful Nines luxury hotel in Portland, Oregon had the unfortunate timing to open just as the economic crisis began to take hold last fall. The resulting fallout means that this $141 million hotel is struggling to pay its bills (much like a couple of hotels in Scottsdale, Arizona).
The Oregonian reports that the Portland Development Commission agreed this week to accept delayed payments on taxpayer-funded loans to keep the developer from defaulting. The developer, Sage Hospitality Resources of Denver requested the delay with Ken Geist, Sage's executive vice president for development, telling the Portland Development Commission's board that the hotel could not have picked a worse opening date. The sudden and rapid drop in corporate travel spending deeply cut into the hotel's expected revenue. It is expected to generate less than half of what it was originally supposed to deliver in net operating income in its first year.
