More news on the Nashville convention hotel project. According to The Tennessean, financing for the $300 million, Marriott property may need public financing, eliciting concerns some local hotel owners.
"That would be a major, major sea change from the market for private lodging properties right now," Mark Bloom, senior vice president for tax-free bonds with UBS Financial Services, Inc., and a minority owner of the Hilton Downtown Nashville, told the paper.
Though private financing is ideal, it may not be possible for such a large project to find private funding in today's marketplace. Nashville would pay off the debt on a publicly-financed hotel using revenue from the hotel itself.
Though some are concerned that a government-owned hotel could drive down room rates with no repercussions, Walt Baker, CEO of the Tennessee Hospitality Association, said Marriott would have control over sales.
"We wouldn't want to get into a pricing war with Metro [Council]," Baker told The Tennessean. "It doesn't matter as long as the management is independent and has control over pricing."
"That would be a major, major sea change from the market for private lodging properties right now," Mark Bloom, senior vice president for tax-free bonds with UBS Financial Services, Inc., and a minority owner of the Hilton Downtown Nashville, told the paper.
Though private financing is ideal, it may not be possible for such a large project to find private funding in today's marketplace. Nashville would pay off the debt on a publicly-financed hotel using revenue from the hotel itself.
Though some are concerned that a government-owned hotel could drive down room rates with no repercussions, Walt Baker, CEO of the Tennessee Hospitality Association, said Marriott would have control over sales.
"We wouldn't want to get into a pricing war with Metro [Council]," Baker told The Tennessean. "It doesn't matter as long as the management is independent and has control over pricing."
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