Despite downturn, hotel Ames high
By Thomas Grillo | Wednesday, June 3, 2009 | http://www.bostonherald.com | Business & Markets
Morgans Hotel Group is opening its first hotel in Boston this fall, and the timing couldn’t be worse.
“We’re seeing significant declines in occupancy and rates in Boston and nationwide, and we don’t expect improvement until 2011,” said Reed Woodworth, vice president at PKF Consulting, which tracks the hotel industry.
But Paul Sauceda, the Ames Hotel’s sales and marketing director, shrugged off reports that lodging revenues are down and the forecast is grim.
“The show must go on,” he said. “We came to Boston because the city is increasingly becoming a destination, and we think we have something special to offer.”
The Ames Hotel in the Financial District is under construction in a 14-story turn-of-the-century office building that is listed on the National Register of Historic Places.
The Romanesque-style structure operated as the corporate headquarters for the Ames families’ agricultural tool company.
Morgans Hotel Group teamed with Normandy Real Estate Partners to develop the $75 million luxury hotel featuring 115 rooms, a restaurant, bar and gym.
The 1 Court St. building will retain its original staircase and lobby mural. But the designers added contemporary spaces to compete with other hotels like the Liberty and the soon-to-open W Hotel in the Theater District.
The Ames Hotel is scheduled to open in October, with nightly rates starting at $165.
Woodworth said the Ames could be forced to lower its prices and offer packages that could include entertainment in the city.
“People who are taking vacations are looking for value and hotels need to be creative,” he said. “If your buyers don’t know you, hotels must offer low prices to be competitive.”
On the Web: http://www.ameshotel.com/#/home/
Article URL: http://www.bostonherald.com/business/general/view.bg?articleid=1176429
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