In a landmark ruling that has its roots in the hotel industry, the U.S. Supreme Court on Tuesday found that secured creditors cannot be denied the right to credit bid for their own assets, reports HotelNewsNow.com’s Shawn A. Turner.
The ruling stems from Radlax Gateway Hotel LLC, et al. v. Amalgamated Bank. At issue was whether lenders should have the right to purchase their own collateral at bankruptcy auction by using debt, a process known as credit bidding.
The dispute surrounds the proposed auctions of a pair of hotels owned by Radlax, an entity of River Road Hotel Partners LLC that declared bankruptcy in August 2009: the InterContinental Chicago O’Hare and the Radisson Hotel at Los Angeles Airport. Court filings show River Road had secured stalking horse bids totaling $89.5 million for the properties.
But Amalgamated, the principal secured lender for the hotels that court documents show is owed in excess of $161 million, objected to the bid procedures on 8 July 2010, stating the bank was not given the opportunity to credit bid, a tactic that courts were split on allowing.
Days Inn on Tuesday announced the launch of the first prototype in its 42-year history.
With more than 1,600 properties in the United States alone, Days Inn created the prototype as a “kit of parts” offering franchisees a uniform model to reference whether they are building from the ground up or renovating an existing property in phases.
Available in four-story and seven-story versions, both floor plans allow for a fitness room and a lounge area that is adorned with contemporary furniture and a flat-screen TV. Guestrooms are designed with an accent wall, a seating nook and a bedding concept that highlights the brand’s blue and yellow signature colors.
Proposed travel tax hikes in San Mateo County, California, will damage the local economy, according to an economic impact study conducted by Rockport Analytics.
The study analyzes two measures that San Mateo County voters will consider when they head to the polls on 5 June: Measure T, a proposal to raise taxes on all San Francisco International Airport car rental receipts, and Measure U, a proposal to boost the hotel occupancy taxes on airport-area hotels.
Nearby communities such as Oakland and San Jose would directly benefit from the tax hikes, as travelers shift their plans in response to higher prices. The proposed hotel occupancy levy, for example, makes tax rates at San Francisco International Airport hotels higher than hotels near Oakland International Airport or San Jose International, both of which are less than 50 miles from San Francisco International.
Kenneth McGill, managing director of Rockport Analytics, stressed the study's conservative estimates and said that a higher-tax reality could be even grimmer: "In today's tight economy, consumers are highly sensitive to price increases, so the consequences of these tax hikes could be even worse. New taxes could cut a family's four-day stay to three, result in fewer meals in restaurants or less spending in local shops, or even result in a cancelled trip."
Americans anticipate spending more on both business and leisure travel this summer according to D.K. Shifflet & Associates’ quarterly travel intentions survey conducted among a representative sample of the U.S. population. Fewer than 20% of those surveyed plan to travel, or spend less than they did in 2011.
Spending intentions of business travelers surveyed:
- 36% intend to spend more this summer than they did last summer;
- 36% intend to spend the same amount;
- 17% intend to spend less; and
- 15% were unsure if they would spend less or more on business travel this summer.
Spending intentions of leisure travelers surveyed:
- 36% intend to spend more this summer than they did last summer;
- 31% intend to spend the same amount;
- 17% intend to spend less; and
- 15% were unsure if they would spend less or more on leisure travel this year.
Fairmont Hotels & Resorts and Manchester Texas Financial Group LLC signed an agreement for Fairmont to manage a new city center hotel slated to open in 2015. The 1,000-room Fairmont Austin will be located directly east of the Austin Convention Center.
The $350-million project will generate approximately $6 million in hotel occupancy taxes and contribute $4 million in annual property taxes, most of which will go to the Waller Creek tax increment financing district. In addition, it will add roughly 1,000 permanent jobs to the Austin market, not including jobs generated during the construction project.
Compiled by Stephanie Wharton.
