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Wednesday, December 23, 2009

See-through Hotels

by Calculated Risk on 12/23/2009 05:07:00 PM

With record low occupancy rates (lowest since the Great Depression), it isn't surprising that some hotels are just closing down ...

From the Daily Herald: Arlington Heights Sheraton, Coco Key water park to close (ht Doug)

Barring a last-minute rescue, the 14-story [Sheraton Chicago Northwest] hotel at 3400 W. Euclid Ave., as well as the 65,000-square-foot indoor CoCo Key Water Resort, will cease operation at 5 p.m. Dec. 28.
CoCo Key opened in January, 2007, at a cost of $25 million.

As the largest hotel in Arlington Heights, the Sheraton's closure amounts to a huge loss for the village in terms of sales tax revenues and jobs.
And from the Chicago Tribune: Wyndham O'Hare hotel in Rosemont to close on Jan. 1
The Wyndham O'Hare at Rosemont will close a week from Friday ... The closing of the 12-floor, 466-room hotel comes at a time of declining revenue in the hotel industry and a struggling convention industry in Chicago. ...

The hotel defaulted on a loan at the same time that the bank holding the loan was ... seized in October ... The new owner of the loan, U.S. Bank, was not willing to advance the funds needed to keep the hotel open while in default ...
See-through hotels!