Monday, March 26, 2012
As Portland leaders try to muster support for a large convention center hotel, opponents cite The Nines as an example of what could go wrong.
The Nines, a 331-room luxury hotel in downtown Portland, funded in part with $16.9 million in loans from the city, has made few friends among its competitors since it opened in 2008.When the economy tanked, The Nines aggressively discounted, offering its opulent rooms for $99 a night. Competitors had little choice but to offer steep discounts of their own, starting a downward spiral that slashed their revenues by 20 to 40 percent.
When times got tight, The Nines once again turned to the city. In March 2009, the Portland Development Commission agreed to requests from The Nines' developer, Sage Hospitality Resources, to temporarily stop making loan payments.
Sage hasn't paid the city a dime since, even as the economy and hotel business has strengthened.
Read more at OregonLive.