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Cincinnati: Downtown: Renaissance Hotel (Bartlett Building Redevlopment)

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Downtown Marriott hinted

Tenants told owners want Renaissance

http://news.cincinnati.com/apps/pbcs.dll/article?AID=/20080710/BIZ/807100306/1076/NEWS

 

Article highlights:

  • The owners of the 108-year-old, 18-story Bartlett Building at Fourth and Walnut streets are clearing out tenants to make way for a hotel, a lawyer for the group said Wednesday.
  • If the building is converted into a hotel, it would be the first new hotel downtown since 1984 - when the Hyatt opened.
  • A new Renaissance might boost the region's ability to compete for larger conventions. Downtown already has eight hotels that are routinely used for convention business: the Westin, Hyatt, Hilton, Millennium, Cincinnatian, Garfield Suites, Terrace and Ramada Queensgate.
  • Not every existing office tenant will have to leave - like the first-floor retail tenants.

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Most of the tenants there were small offices, solo law firms etc. The only major tenant left was the American Airlines call center which employs a few hundred. American has already said that they will be closing the call center and laying off the employees once the buiding closes.

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Hot Damn ... two new hotels, in the DT area with one or two to follow (Banks) down the road!

 

What's the other one?

 

Humana's new regional HQ, near Eden Park and Reading.

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I wonder how many tenants will stay downtown.

 

As Brutus touched on, I would suspect that most of these tenants will stay Downtown.  Law firms, as much as banks, like to be located in downtowns.  These smaller firms will just shuffle around into a new space.  More than likely an upgraded one from the low-quality office space that Bartlett offered.

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Hot Damn ... two new hotels, in the DT area with one or two to follow (Banks) down the road!

 

What's the other one?

 

Humana's new regional HQ, near Eden Park and Reading.

 

That doesn't sound like a hotel.

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this is what happens when you get a mayor and city manager who are serious about taking charge and getting larger projects done...tenanats start popping up like weeds downtown...they need to run for pres and vice...they can run as charterites lol.

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Okay, so it's a facility that houses Humana's new regional headquarters, as well as a hotel to be run by a yet to be identified chain.

 

The earlier posts made it sound like the HQ was a hotel.

 

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Okay, so it's a facility that houses Humana's new regional headquarters, as well as a hotel to be run by a yet to be identified chain.

 

The earlier posts made it sound like the HQ was a hotel.

 

 

Alabama, you're obviously not up to date on your UrbanOhio news or else we would not have had this convo. ;)

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Not to burst the bubble… I was talking to a friend of mine who works for Marriott. His job go around and open the new Hotels around the country. He said that this would have been on his radar if it were anywhere near beginning. He almost joked about the thought of Cincinnati getting another Hotel. His exact words were “yah, like we will open another hotel that operates at 50% capacity”. He did say that they had made worse moves before, and that it may happen, If it hasn’t made it to him yet, it probably isn’t that far along in the process.  :x

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Yeah, the article mentioned that this was early in the process, and I hope it happens, but there was really no "official" word on the project.  Also, as far as vacancy rates go, an industry standard of 80-85% occupancy is considered a very high rate, the breakeven mark for most hotels is usually in the 60-65% range, but obviously varies on what type of hotel it is.

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50% capacity? I thought all the downtown hotels were booked this week?

Yeah, the article mentioned that this was early in the process, and I hope it happens, but there was really no "official" word on the project. Also, as far as vacancy rates go, an industry standard of 80-85% occupancy is considered a very high rate, the breakeven mark for most hotels is usually in the 60-65% range, but obviously varies on what type of hotel it is.

 

I'm sure he was slightly exaggerating on the 50% number. But i think his point is that Cincinnati may not be able to handle another hotel.

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50% capacity?  I thought all the downtown hotels were booked this week?

Yeah, the article mentioned that this was early in the process, and I hope it happens, but there was really no "official" word on the project.  Also, as far as vacancy rates go, an industry standard of 80-85% occupancy is considered a very high rate, the breakeven mark for most hotels is usually in the 60-65% range, but obviously varies on what type of hotel it is.

 

I'm sure he was slightly exaggerating on the 50% number. But i think his point is that Cincinnati may not be able to handle another hotel.

 

The 2007 State of Downtown Report listed Downtown hotels generally hovering around a 60% occupancy rate.  This number is better than the average occupancy rate for Greater Cincinnati and the entire Tri-State.  Be sure to forward this report on to your friend, he might just find it interesting.

http://gototown.com/files/uploaded/StateofDowntown_2007.pdf (6.56mb)

 

Just the facts man, just the facts.

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Not to burst the bubble… I was talking to a friend of mine who works for Marriott. His job go around and open the new Hotels around the country. He said that this would have been on his radar if it were anywhere near beginning. He almost joked about the thought of Cincinnati getting another Hotel. His exact words were “yah, like we will open another hotel that operates at 50% capacity”. He did say that they had made worse moves before, and that it may happen, If it hasn’t made it to him yet, it probably isn’t that far along in the process.  :x

 

This project is SO early in the planning stages that he would have absolutely NO way to call that. An opening would still be 3-4 years out probably and no contracts have been signed for the Renaissance flag yet. Moreover, does he know that Marriott is extremely interested in expanding in Cincinnati? Does he know that we have a SpringHill Suites coming to the city a few months away?

 

Also, he obviously does not know much about the lack of luxury hotel brands in Cincinnati. If he works for Marriott all around the country, I seriously doubt he'd know specific numbers and demand in each individual market. Yes, there are some properties that do poorly and there are reasons for this, but there is nothing even close to the Renaissance brand in service, design, price, etc and that is why this could be a draw.

 

Sorry to rant, but I HATE when people who don't know the situation discount things in such a manner. He needs to do some research before he can say shiz like that.

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Not to burst the bubble… I was talking to a friend of mine who works for Marriott. His job go around and open the new Hotels around the country. He said that this would have been on his radar if it were anywhere near beginning. He almost joked about the thought of Cincinnati getting another Hotel. His exact words were “yah, like we will open another hotel that operates at 50% capacity”. He did say that they had made worse moves before, and that it may happen, If it hasn’t made it to him yet, it probably isn’t that far along in the process.  :x

 

This project is SO early in the planning stages that he would have absolutely NO way to call that. An opening would still be 3-4 years out probably and no contracts have been signed for the Renaissance flag yet. Moreover, does he know that Marriott is extremely interested in expanding in Cincinnati? Does he know that we have a SpringHill Suites coming to the city a few months away?

 

Also, he obviously does not know much about the lack of luxury hotel brands in Cincinnati. If he works for Marriott all around the country, I seriously doubt he'd know specific numbers and demand in each individual market. Yes, there are some properties that do poorly and there are reasons for this, but there is nothing even close to the Renaissance brand in service, design, price, etc and that is why this could be a draw.

 

Sorry to rant, but I HATE when people who don't know the situation discount things in such a manner. He needs to do some research before he can say shiz like that.

 

I, too, am very confused with UCplanner's comment.  Marriott has been working on plans for a Residence Inn at Newport on the Levee for well over a year (never solid plans but lots of SD).  Marriott has been locked in to the Springhill Suites deal since near the very beginning of the Humana project planning (although apparently it was a secret).  Anyone who is in the loop at Marriott would have to know about those discussions.  Marriott often teams with Cincinnati design firms for work on hotels elsewhere.

 

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I just want to point out that the Marriott Spring Hill Suites is a franchised location.  Marriott Rivercenter is a franchised operation.  In fact, most Marriotts in the Cincinnati area are franchised.  This means Marriott did not "build" these locations. Should a Renaissance open, it could be a franchised location.  The owner would simply raise the Renaissance flag and agree to operating it to Marriott's standards for the Renaissance brand.

 

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AndrewN is correct, Corporex owns all/most of the hotels it builds with the exception of those spun off in the Eagle Hospitality deal.  A Corporex affiliate owns them, franchises them from whatever chain is reflective of their target audience and runs them under the Commonwealth Hotel moniker.  Other than paying the franchise fee, adhering to the chain's standards and sharing in marketing, they are mostly an independent business.

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I just want to point out that the Marriott Spring Hill Suites is a franchised location.  Marriott Rivercenter is a franchised operation.  In fact, most Marriotts in the Cincinnati area are franchised.  This means Marriott did not "build" these locations. Should a Renaissance open, it could be a franchised location.  The owner would simply raise the Renaissance flag and agree to operating it to Marriott's standards for the Renaissance brand.

 

 

You are correct and Marriott does not allow its franchisees to only open 1 or 2 properties...they must be committed to extensive growth within Marriott brands to be allowed to take on a Marriott brand. Also, I do believe that Renaissance properties are one of the brands that are often owned/operations by Mariott because they are a much higher scale product vs. SpringHill or Residence Inn.

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You are correct and Marriott does not allow its franchisees to only open 1 or 2 properties...they must be committed to extensive growth within Marriott brands to be allowed to take on a Marriott brand. Also, I do believe that Renaissance properties are one of the brands that are often owned/operations by Mariott because they are a much higher scale product vs. SpringHill or Residence Inn.

 

Actually, I can name several Renaissances ( OKC, Tulsa, Dallas-Richardson) in the US that are owned by John Q. Hammons  hotel company.  I am confident that others are franchised. JQH properties are located predominantly in the south central plain states.  What is interesting is that JQH operates many brand flags under his franchise.  You will see Embassy Suites, Renaissance, Marriott courtyard, ect.  I am not sure about the "rule" of operating more than one or 2 under the brand.  I would think one convention center hotel with 1000 rooms might count for some thing in any market.

 

Anyway, a Renaissance in Cincinnati is a dream right now.  When all is said and done, this building could become a number of boutique hotels flags that fit the property size and location.  Honestly, Someone was probably having a conversation about the building becoming a boutique hotel and the person in the know said something similar to "a boutique hotel like a Renaissance" and the media jumped all over it.

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Think of it as kinda foster parenting of sorts.  The owner lost management custody of the building. Once the owner gets his act together, he can have the building managment back.  Until then, it will be managed by someone else.  No matter what the building will always belong to the owner--unless the owner puts it for sale.

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For me, the ideal spot for an additional downtown hotel is the Metropole Apts building and maybe Mariott will consider this as an alternative.  For one, it would eliminate the section 8 element on that block, which in my opinion is one of the worst possible locations for section 8. I also think that the block could really benefit from a hotel due to the fact that the area is truly becoming a primary entertainment district. It just seems the area is screaming for a hotel.  The building also has a certain "classic" feel which I think an higher-end hotel could build upon i.e. create a classic lobby, greenery on the outside.  I think it would be an absolutely perfect location.

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Yea that's got to royally suck.  But there's also a flipside to that coin.  They've known for a while that it was going to be turned into a hotel.  But hopefully stores like that can possibly stay there while they remodel if it gets help from somewhere.  Do they have to gut those stores too?

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What is unfortunate is that the even the stores will probably have their power shut off on them due to the poor management of the building that they happened to lease from.  The power being shut off has no connection to the hotel project.  It just happens to be another situation thrown into the mix for an already complex issue.

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if that happens Id hope they would sue the managment and break lease based on this forcing the bartlett management to foreclose and the building could be developed after all meaning everyone except the poor management would win...thats teach the rat bastards

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I noticed earlier in the week that Fresh was closed.  There was a sign on the door saying that they were closed to develop new recipes.  I wonder if the whole situation with the landlord is the main reason for the decision? 

 

http://www.local12.com/news/local/story.aspx?content_id=7eb2524e-fa01-465a-bfd6-68cce8eedf19

 

Bartlett Building Tenants Get Reprieve

 

The tenants of the Bartlett Building were told that their utilities could be turned off because of unpaid bills.

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