Financing delays building of Hyatt Hotel

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Developers for the proposed Hyatt Hotel have not given up hope for their Reynolds Street project despite being four months behind on breaking ground.

The Hyatt Place Hotel planned for the corner of Reynolds and Ninth streets is to have 139 rooms and will employ 70 people.   Special
Special
The Hyatt Place Hotel planned for the corner of Reynolds and Ninth streets is to have 139 rooms and will employ 70 people.

"In today's economic climate, it's just really hard to get hotel financing," said Cortland Dusseau, a managing partner for Legacy Hospitality LLC. "It's just a matter of time."

Although the project was set to launch in June after the TEE center construction began, plans changed when banks closed their fists and obtaining loans for the hotel project became a bigger hurdle than expected.

Receiving financing for the $25 million project is the only variable preventing workers from breaking ground, Dusseau said.

Until then, workers cannot begin to demolish the old city police department that sits on the site of the proposed hotel at the Ninth and Reynolds street intersection with the trade, exhibit and event center and its parking lot.

Developers have said 60 percent of the project's funding will come from bank loans. The rest will come from Legacy Hospitality's own capital and a federal tax credit through the U.S. Treasury Department.

Despite the delay, Dusseau said he is confident in the integrity of the project and the appeal for downtown Augusta.

The proposed eight-story, 139-room hotel is expected to take about a year to construct. It would employ 70 people.

Hotels nationwide are at 58.8 percent occupancies -- a 2.8 percent increase from this time last year, according to Smith Travel Research. In Atlanta, one of the top 25 travel markets, hotel occupancies jumped from 53.6 percent in 2009 to 58.8 percent this year.

With a hopeful eye for the hotel industry, Dusseau said everything is waiting on the banks.

"We're more optimistic than we have been," he said. "It's just very frustrating."

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Little Lamb
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Little Lamb 10/07/10 - 11:39 am
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Countyman wrote: The Hyatt

Countyman wrote:

The Hyatt downtown is more expensive than the Sheraton and definitely more costly compared to the Holiday Inn Express.

It will also be definitely more vacant than the Holiday Inn Express.

Chillen
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Chillen 10/07/10 - 11:45 am
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Unfortunately this is not

Unfortunately this is not just an Augusta thing. The hotel construction market is suffering nationwide. They can't get loans to build them.

The sub-prime mortage meltdown repercussions are affecting all markets now. Banks are afraid to loan to anyone. Thanks liberals, Frank and Dodd! We appreciate it!

omnomnom
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omnomnom 10/07/10 - 05:04 pm
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well, maybe they could put a

well, maybe they could put a waffle house @ the old jail site. those things seem to thrive anywhere, like roaches.

thewiz0oz
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thewiz0oz 10/07/10 - 07:02 pm
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Hey Cal .... interesting when

Hey Cal .... interesting when ignorance speaks so freely -- “an open, fair, consistent and professional manner” requires individuals to commit the time & effort to become knowledgeable rather than depend on “sound bites” to get their information. For example, do you know who stepped forward in response to a request for someone to protect the property adjacent to the Augusta Common for future significant development when it wasn’t sure if the Common was going to be built, and insisted that the seller have full knowledge of the plans for the Common? Do you know who was the only individual who donated property within the Common so the project could be completed? Do you know who paid taxes & insurance for over a decade & donated his property to various charitable and civic groups for free use? Do you know who contributed thousands of dollars to help place the Oglethorpe statue in the Common? You apparently do not know the answer to any of these questions. Why not educate yourself rather than ignorantly following the air-brains who criticize without taking the time to learn the facts.

fdn315
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fdn315 10/17/10 - 10:19 am
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If or when the hotel

If or when the hotel construction breaks ground would you all be considered wrong?

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