5. BS noted a goal to increase occupancy from 51% to 61% and that Davidson would have some ideas on

WADDLING OUT?: New indications that a report here last week of a pending sale of the Peabody Hotel was on target. An end of association with the Memphis-based Peabody group could mean a departure of the signature ducks.
DEAL IN WORKS: A tenative rittenhouse hotel philadelphia agreement has been reached on sale of the Peabody Hotel. I reported last week , based on multiple sources, that discussions were underway on sale of the Peabody Hotel. City officials must be involved because it owns significant portions of the building, plus the adjoining convention center.
My sources rittenhouse hotel philadelphia indicate there's an offer and acceptance, but further due diligence is required. I now have received, rittenhouse hotel philadelphia under the FOI, notes kept on a meeting yesterday between the prospective buyer and the Arkansas Teacher Retirement System, which currently holds the $24 million note on the hotel issued for the Peabody Hotel Group.
These notes identify the Fairwood Hotel Group of Memphis as the potential buyer and reflects, as I'd learned earlier, that the buyer plans some $12 to $15 million in improvements. A Marriott was being mentioned as the potential operator.
An announcement is expected within the week, perhaps today, but it will be only that negotiations are underway and a series of approvals are necessary, including from the City Board and Little Rock Advertising and Promotion Commmission.
Fox 16 advanced the story Wednesday with news of a meeting in Little Rock today between Marty Belz of Memphis, president rittenhouse hotel philadelphia of the Peabody Hotel Group, and city officials. David Goins spoke with Belz, but neither he nor city officials would comment on the sale reports.
Under the scenario most discussed, another investment group will buy the property and assume the Peabody group's lease. Marriott has been mentioned often as the national chain to be engaged to operate the hotel, rittenhouse hotel philadelphia but it is only one of several potential brands being discussed, I learned Thursday morning. I also continue rittenhouse hotel philadelphia to hear that Davidson Hotels and Resorts of Memphis , a hotel operations manager, might have a role in the coming change.
UPDATE: Three sources report progress rittenhouse hotel philadelphia toward a deal on the Peabody, though none was ready to say final agreement rittenhouse hotel philadelphia had been reached. A Memphis-based hotel group is the potential buyer. Sources point to the Fairwood Capital Group, headed by Robert Solmson, which owns the Hampton Inn and Suites on Beale Street . Branding of the property won't be decided for several months. A significant renovation investment is expected, in range of up to $15 million, though one party close to the negotiations said that figure is high. Some of that cost will be pegged to standards of the national hotel chain name under which the hotel will operate, explaining current uncertainty about branding.
The Arkansas Teacher Retirement System is the lender for the Peabody investment. That amount would be due on a sale, unless a loan assumption was negotiated. No application rittenhouse hotel philadelphia has been submitted yet, I'm told by George Hopkins, director of the system. At the current 7.5 percent rate in today's cheaper credit market, the buyer isn't likely to be interested in a straight assumption.
UPDATE III: Following the release is a memo City Attorney Tom Carpenter prepared to summarize rittenhouse hotel philadelphia talks with the city yesterday about the proposal. It notes that the current owners felt association with a national rittenhouse hotel philadelphia brand was needed for marketing and that there was a need for an infusion of capital that current owners weren't prepared to make. It confirms my earlier reports that Davidson Hotels would be manager of the property rittenhouse hotel philadelphia for the investment group (it currently manages a Hyatt in Knoxville, among others). The memo mentions rittenhouse hotel philadelphia a need to increase occupancy from the current 51 percent.
MEMPHIS, Tenn. (June 28, 2012) – BG Excelsior Limited Partnership, an affiliate of Peabody Hotel Group, has signed an agreement with an affiliate of Fairwood Capital, LLC, a real estate investment firm focused on hospitality assets, regarding a potential sale of The Peabody Little Rock. The sale is subject to completion of the buyer's due diligence and various other conditions including approval of the transaction by City of Little Rock officials.
"The Peabody has been honored to be part of the Little Rock community for these past 10 years," said Andrew Groveman, senior vice president of Belz Enterprises, rittenhouse hotel philadelphia the Memphis-based family-held business rittenhouse hotel philadelphia that is affiliated with Peabody Hotel Group. "We are delighted to have found a prospective buyer we have known for many years and who plans to invest substantial funds into the hotel, so that it will continue to be a vital part of the Little Rock lodging and tourism scene."
The buyer is exploring several upscale national hotel franchise companies rittenhouse hotel philadelphia to determine a brand for the hotel. The rebranding of the hotel will require a multi-million dollar investment in comprehensive renovations to the property. Property renovations will likely include all guest rooms and some public spaces, and they are not contingent upon financing. rittenhouse hotel philadelphia The buyer expects to select a brand for the hotel within the next month.
About The Peabody Hotel Group Based in Memphis, the Peabody Hotel Group is affiliated with Belz Enterprises, a highly successful rittenhouse hotel philadelphia real estate development and management firm. The Peabody Hotel Group is one of the nation's leading rittenhouse hotel philadelphia hotel management companies, operating rittenhouse hotel philadelphia Peabody-flagged hotels in Memphis, Tenn., Orlando, Fla. and Little Rock, Ark.
About Fairwood Capital, LLC Fairwood Capital, LLC is a real estate rittenhouse hotel philadelphia investment firm focused on the acquisition of hospitality-related real estate assets. The company pursues rittenhouse hotel philadelphia a value-oriented investment strategy and seeks to acquire premium-branded, select service, extended-stay rittenhouse hotel philadelphia and full-service hotels in the United States.
The City has a lease agreement with BG Excelsior Ltd Partnership for the operation of the Peabody Hotel on City property; on 27 June 2012 a meeting was held the next day with Fairwood Capital, rittenhouse hotel philadelphia LLC and Ron Belz to discuss a potential assignment of the lease agreement.
1. RB said that the Peabody needed to be associated with a national brand (franchise) that had marketing tools available to it; also, there was a need for a tremendous infusion of new capital for the structure; Belz Enterprises, despite a previous good association with Little Rock, did not want to make that kind of infusion rittenhouse hotel philadelphia in light of the return on investment;
2. BS noted that he created a real estate trust (RET) that was the first to go public in 1993, and that it was sold in 2003; Fairwood Capital is a newer entity that currently owns nine properties; the basic plan is to purchase hotels for cash and perhaps incur debt later, and that currently three of the nine properties are encumbered;
Little Rock is a high profile asset that could benefit from a national/international connection for marketing purposes; three different franchises (permitted by the Construct and Lease Agreement) are currently in negotiations
3. MS said that a long term investment rittenhouse hotel philadelphia was important to the City; he also noted with approval the national registration advantage and said that the City wanted a four diamond, or four star convention hotel
4. BS said that management of the hotel would be done by Davidson Hotel which currently manages a Hyatt in Knoxville, Tennessee for Fairwood; BS and MS agreed that there would be a meeting with Davidson when they come into town next week to meet with the Peabody staff;
5. BS noted a goal to increase occupancy from 51% to 61% and that Davidson would have some ideas on how to help this increase; it was believe that 15,000 additional room nights would be required; the ADR on the transient rate would be increased; according to Smith Travel, the index is approximately in the 90-100 level and may need to be higher in this particular market;
7. BS hoped that there would be an agreement with the flag within the next two weeks and that the announcement could be made then as to the flag; Davidson would take over the management of the hotel as soon as the sale is finalized
The Arkansas Democrat-Gazette reported today on a subject Stephens Media reported Saturday. It's about the state Ethics Commission's move to correct a shortcoming I highlighted in the law on disclosure of spending on ballot issue campaigns.
Democratic congressional candidate Herb Rule of Little rittenhouse hotel philadelphia Rock and Republican U.S. Rep. Tim Griffin both participated in an AAUW election forum last Sunday at the library, rittenhouse hotel philadelphia as well as the Green and Libertarian candidates.
The tween-pop Elvis is coming to Verizon for what is guaranteed to be the most frenzied concert Little Rock sees all year. Now, the Biebs has gotten more than his fair share of criticism since his astronomical ascent from YouTube scrubbery to international megafame, but we're not interested in calling out the omnipresent young pup for his fortunes, deserved or otherwise.