Sadly the economy once again takes a toll on higher-end properties like this one. Similarly, the new Ritz Carlton in Rancho Miraqe CA is having problems opening (and has had them for years). The Ritz Residences are in fact completed.
Travel has become a buyer's market and the sellers have been reluctant to sell at reduced rates. Mortgages must be paid regardless of the room occupancies, staff salaries continue, utility bills mount.
Innovative strategies will be required to keep that top three percent interested in full rates. Here's hoping!
"sellers have been reluctant to sell at reduced rates"
The upscale higher-end brands like Ritz-Carlton are struggling. Investors are more inclined to write-off the loss because it is favorable from a tax perspective to do so.
Interestingly, loyalty programs like Marriott Rewards provide some cushion. As illustrated by the 2010 Hotel Category changes, struggling properties sliding a notch have the opportunity to regain some occupancy by repositioning them in the marketplace as more affordable by requiring less points.