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Hotels Are Hurting, We’re In A Deep Recession, But Thank God We’re In Texas

The Four Seasons San Francisco is in default on it’s loans to LNR Property Corp., and the Renaissance Stanford Court Hotel on Knob Hill (across from the Fairmont) is in default on it’s loans to the tune of $89 million. California’s a real financial mess, I know, so why do we care in Dallas? Well, things usually start getting bad on the coasts and then roll our way, like this thing called the housing crisis. Supposedly this is posturing to renegotiate debt, but note this quote:

“”We’re in a deep recession and hotels are suffering the most of any real estate class right now.”

A report by Atlas Hospitality estimates that room revenues in California are down 21.5 percent in 2009 and that values are 50 to 80 percent lower than they were at the market’s peak from 2005 to 2007.”

Over at Victory Park, home to the W Hotel, the financing has also made a major change, and I cannot help but wonder, if hotels are a sort of real estate barometer, how are we doing in Dallas?.

Dallas IS A World-Class City

This is a great 36-hour look at Dallas in today’s New York Times, and our city comes out shining as much as Reunion Tower. Even the Dragon Street arts district was lauded. But one sad note: Gerald Peters is shuttering its doors, as we reported on Dallas Dirt.

Stoneleigh Heritage Gets Help From P.O’B Montgomery

P. O’B Montgomery & Company, a respected Dallas real estate and development firm, is now working with the Prescott-Apollo partnership that owns the on-hold Stoneleigh-Heritage Residences. (Or whatever they are now called.)  Mission: figure out what to do with that sad residence shell looming behind the Maple Avenue hotel. Early December, Prescott brought Montgomery into the picture to study all market options as an advisor, not investor. Apollo and Prescott have sought financing for the Stoneleigh project since their credit source ran dry in the fall due to the Wall Street financial meltdown.

“We are looking at doing whatever makes sense,” Phil Montgomery told me today, when asked if the residences would resume construction. “The market has clearly changed.”

Prescott’s Jud Pankey says the garage is complete and open, and construction attention will now focus on the courtyard. This month’s Architectural Digest feature on the hotel and colorful designer, Carleton Varney and his mentor, Dorothy Draper, has generated national interest in the project; Varney is coming back to Dallas in the spring to create more buzz.

If another developer were going to be engaged for this project, the most likely time would be when construction financing is being negotiated, said Pankey by email.

“Phil Montgomery introduced me to Apollo almost ten years ago, and we all try and assist each other when faced with a challenge,” wrote Pankey.

What we are doing, said Montgomery, is fairly routine.

According to sources, Al Coker is no longer handling marketing for The Stoneleigh Heritage Residences; Cynthia Pharr is handling media relations.

The Stoneleigh

The Gallery, Carleton Varney for Dorothy Draper & Company. Be sure to read in AD how our Peter Goodchild restored two 18th century mirrors covered with 30 years of paint.

The Stoneleigh

The Gallery as created by Dorothy Draper in 1936.

The Stoneleigh Debutes In Architectural Digest

The February, 2009 issue of Architectural Digest includes a wonderful story by Nancy Collins depicting the Carleton Varney re-vamp of the Stoneleigh Hotel and Spa. This is the music room. I was with Carleton in this room shortly before the Stoneleigh’s opening soiree and we shot this video.

Opening of Atlantis, The Palm: Dallas Present In Full Force Weekend Past

All because Dallas interior designer Trisha Wilson’s company, Wilson Associates, did the design for the $1.5 billion dollar hotel. You bet she was there! Trisha says there were more than 2000 VIP guests, herself included, at one of the most expensive and lavish hotel openings in history. Despite recent financial news, owner/developer Sol Kerzner spared no expense. Kylie Monogue was the featured performer and she sat at the table right next to Trisha — “one of the nicest celebrities I’ve ever met,” said Trisha, adding that Kylie is tiny and had on fabulous 5 inch heels. Samantha Ronsen was the DJ for the afterparty. She was there with Lindsey Lohan, Quincy Jones and Robert De Niro. Trisha was seated with Yue- Sai Khan (her good friend, the “Oprah of Asia”, read all about their interesting friendship in the article I wrote on Trisha for DCEO Magazine). Other Hollywood celebs present include Charlize Theron, Mary-Kate Olsen and Michale Jordan plus enough royalty to bail out the bail out.

The Stoneleigh: Q&A (Sort Of) With Jud Pankey

Jud Pankey was kind enough to answer my questions about the Stoneleigh last week, then our blog was down, etc. etc. So here you have it.  I am truly sorry The Stoneleigh has been caught in this credit mess. I would like to personally march all those Wall Street Rocket Scientists over to that shell and tell them where to stuff their financial algorithms…

DD: What are you going to do with the shell?
Jud Pankey: The shell is going to stay as is. It will be ready to go again once we close a loan. The garage will be ready next week, so we have made some progress. We will then turn our attention to the courtyard.
DD: The parking garage is completed for the hotel, so will you let the shell sit?
Jud Pankey: Not sure what else we would do. Do you have any creative ideas, as I am all ears?
DD: Was the crane really costing $30K a month?
Jud Pankey: Yes—close enough.
DD: Will you build a smaller, scaled back condo perhaps?
Jud Pankey: No—does not make sense.
DD: Do you have any financing promises at this point?
Jud Pankey: We are working with a couple of lenders. They do exist!!
DD: Is this why Paulson (last week) said he is aiming the bail out funds at the banks?
Jud Pankey: Not sure what he said but the banks are trying to figure out risk between banks and customers. I think it is confusing for everyone, hence there is no confidence. The banks are trying to price risk and they have plenty of capital, but they are not being paid to lend money just to lend money just yet. Plus, the regulators need to encourage them to lend versus contract. It is an interesting time.

Steve Brown: Stoneleigh Heritage On Hold

I asked the question last summer… amid near-weekly emails from folks saying nothing was happening at the 22 story, 118 unit luxury condo residence tower under construction behind the Stoneleigh Hotel. Now we know why: Steve Brown reports today that Prescott’s financing fell through, and the cranes are coming down, at least for now. Putting calls through to some of the first buyers, so stay tuned. 

Memories… Like The Corners of The Stoneleigh Hotel

Unfortunately, I did not grow up in Dallas. (Got here soon as I could.)Any child-hood hotel memories I have evoke the Drake, Palmer House, and a Howard Johnsons where we used to pig out on ice cream and crash pool parties. So any memories I have of the Stoneleigh Hotel on Maple are fresh — sweet and fun, not ancient. I remember loving it the first time I laid eyes upon the maroon-y lobby because, I think, it reminded me of an old, grand Chicago hotel, which made me feel at home. I remember fun Nancy Smith luncheons — Carlton Varney holding court in the fabulous oak-panelled Dorothy Draper dining room in the penthouse. I remember a luncheon or dinner where Linda Ivy lost one of her ginormous diamond rings, her husband Steve told her not to worry about it, but that darling girl got down on her hands and knees and hunted ’til she found her bling. I remember the last Press Club event at The Stoneleigh — a great party — what was Elizabeth Albanese doing that night?

Who cares about my memories, click here to connect to theStoneleigh memories Contest and give us yours. Help a great hotel take a walk down Memory Lane. Comments are on, especially if you have something to say about that Mistress Tunnel… 

Jonas Woods W Condo Sales Price

As you know, Texas is an undisclosed sales price state. But a little birdie in the know tells me the 9285 square foot unit sold for $5.8 million. Impressive reduction, but still a great net. Carolyn Shamis brought the buyer (name not yet know, stay tuned) and here’s how she did it: Carolyn heard that another agent was looking for a home for a client in Preston Hollow with land, tennis court and pool. In other words, a spread. She got on a program “where you can look at people’s backyards,” she told me, and narrowed the search down to 12 properties with the necessary criteria. Then she wrote nice letters to all twelve of those estate owners: “Dear Trophy Property Owner, I have a bazillionaire client seeking a multi-acre estate in your beautiful area up to $15 million who wishes to pay cash. Don’t be an idiot, Wall Street melted, call me.” She sent the letter out Monday, got some downright nasty responses by Friday. (”How dare you contact me! My estate is NOT for sale.”) But on Saturday — and these stories are literally why I wake up in the morning — she gets an email from one of the twelve letters who ended up being the buyer of Woods’ penthouse. And by the way, that W pad is now this buyer’s weekend home.

Do We Need Another Downtown Hotel Or Don’t We?

Only the financial Gods know for sure. I’ll admit that recent financial news now has me thinking against this. There are plenty of hotels downtown,and more slated to come… maybe contract with one of them? There are 129 rooms in The Joule, located in the landmark 1920’s Dallas National Bank building. On the other hand, it would be tragic if this economic crisis put a crimp in our development just as our city is about to really spread wings.

The Joule — Greatest Party This Town Has Seen

(And may see for a while to come. ) Cute Sarah Eveans beat me to posting Friday night’s Joule bash, what can I say, she’s younger, prettier and obvi handles champagne much better. (But I got a photo, from the lady’s bathroom!) Main Street was blocked off, and there was a robed gospel chorus singing to greet us as we stumbled from our autos. Oh wait, that’s just what Sarah wrote. I did see Mr. Scorsese, a short man with enormous eyebrows, and Sarah Ferguson — that diet works — as they left the patio. I also saw and chatted with…

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Palomar: Repriced, Realistic, Ready to Rock and Roll

This lunch for Realtors only: the Palomar has immediate occupancy and condo prices starting in the $300K’s.

Burlesque, British Babes, and the Jonas Brothers — The Joule’s Opening Bash

This photo may give you an indication of the way I spent last night — not too clearly. The Joule’s opening party was a fete to end all fetes. More photos downloading after my Advil kicks in. (Let’s just say the Joule staff believes in a bottomless glass.) Unbelieveable food, drink, company. Burlesque in the downstairs bistro every hour on the hour. I parked my hubby with Angie Barrett and ran to the bathroom where I snapped this photo and — entirely missed the three-minute show.

Dallas Convention Center Hotel: We Need It Like Last Week

I did not receive a mailer about the proposed Convention Center last week — or if I did, I missed it. However, I do think we need this hotel and the resultant business. Property taxes, let’s face it, are never going to spiral downward I don’t care how much our property values plummet. Now we have people buying renting downtown, get my drift? Thus I’m sharing this from a reader and neighbor:

“You may have been surprised like I was this past week to receive a mailer regarding the building of a Dallas Convention Center hotel which included a request to sign a petition to demand a taxpayer vote. If this is not an issue with which you are familiar, then the mailer may well have caused you to have grave concern about the leadership of our city council and the direction they are headed with this hotel.

 A press conference was held today at City Hall which set the record straight regarding the “myths” (that’s being kind) that were stated in the mailer. Presuming that you did not hear that press conference, I ask that, before signing any petition proposed by the opponents sending the mailer, you please visit http://www.buildthehotel.com/ to learn more about this critical issue.

 Obviously this is an issue with which I am very familiar and adamantly support. Dallas desperately needs this convention center hotel. It is long overdue.

 Again, I encourage you to visit the website to learn the facts. I would also welcome your phone calls if you have questions or would like to discuss what is at stake.

 Best regards and thank you for your consideration,

 Laurie Sprouse”

Carleton Varney Coming to The Stoneleigh

Sources tell me he’s in town for a charitable event with Laura Hunt, but then I just remembered that Architectural Digest is shooting the Stoneleigh Hotel later this week, and Carleton, of course, has designed the Dorothy Draper floors. (Check out our fun video.) He is reportedly glad for an excuse to get out of Gotham: the mood from a sinking Wall Street is very glum, and Carleton is happy to be visiting a happier place.

Did Trisha Wilson’s Work Go Up In Flames At The Palm Dubai?

I totally missed this. Local design dynamo Trisha Wilson, founder and CEO of Wilson & Associates, did all the design work for The Palm.

A Free Night At The Ritz-Carlton Dallas Hotel

That’s what General Manager Roberto M. W. S. van Geenen has graciously offered all brown-water Ritz-Carlton condo residents to minimize their inconvenience during the plumbing repairs next week, when the hot water supply will be off. No word on whether they will send up a free meal from Fearings, or those heavenly cheese crackers (recipe in our September issue), but I have no doubt everyone will be enveloped in total luxury. Now that’s class.

Live At The Ritz Residences? Stock Up On Deodorant This Weekend

Life is never perfect, even in the most glammed up, glitzed out, $800 per square foot condo you can buy in downtown Dallas. But there, at least, the help is very helpful. Some folks at the Residences at the Ritz-Carlton Dallas have experienced ewwww water discoloration in their homes — that is, brown stuff running out of the faucets and into the kitchen sinks. Or jacuzzi bathtubs. Or Carrera marble showers. (Commodes, let’s not go there.) Not very appealing or conducive to the color scheme of the manicured decor.

But alas, Crescent Plaza Residential, L.P., has sprung to action. First they researched the problem — the water discoloration is a result of oxidation of iron in the lining of the galvanized steel piping in the building. Some level of oxidation in steel pipe is “normal and expected, but not to the degree you are experiencing” says Crescent.

And yippee, they have a solution: The pipe interiors will be flushed with a citric-base rinse approved for potable water systems. Then they will install a central water treatment system, which will treat Dallas’ higher PH level water and form a barrier against future oxidation. This has apparently been successful in similar situations across the country, and Ritz will keep on top of it monitoring the water scrupulously.

Bad news is that this process requires a two-day hot water shut off beginning September 2 to 4. I mean, you can stay in your condo, the commodes are fully function able. Just no hot water. Which means frigid showers and baths. Many residents who, like me, would rather take an Italian shower than plunge in water below 85 degrees, plan to find alternate accommodations for the two days. Or, at least, go shower with friends who have hot water.

I’m told the hotel is not affected by any of this as it is on a completely different water system. So I’m wondering how many residents might be checking into the Ritz Hotel for a couple nights.

Showtime: The Joule

OK, it isn’t a home, but if I had to live in a hotel in downtown Dallas, this would be it!

The Joule Luxury Hotel

If you bumped into people with lovely accents carrying notebooks in downtown Dallas yesterday, that would be free-lance writers from over the pond in Dallas to cover a celebrity press junket at the new Joule Hotel, 1530 Maine Street. These were writers aiming high — New York Times, Town & Country, Wallpaper. They met with the likes of Bram Tihany, art collector extraordinaire, John Runyon, Todd Fiscus that genius of Dallas entertainment, Jenni Benzaquen of Luxury Collection, restaurateur Charlie Palmer and designer Adam D. Tihany. It was really quite overwhelming to be in the same building with all that talent — the vibes just oozed positive ions. Thank God we did this video a few weeks before.

Attention Shoppers: Blue Light Special, Corner Mockingbird and Central Expressway

An agent tells me that the folks selling the Palomar have lowered their prices to a point where the units may be moving or at the very least, getting a lot of attention:

“Major price slashing in the last week at the Palomar Residences.  They were grossly overpriced from the start and haven’t been selling, so maybe this will start the ball rolling.  Some of the more expensive condos have been cut by 30% or more, like a $1,315,000 unit that is now $880,000.  The hotel seems to be doing well and is getting very good reviews, but the developer seriously overestimated the condo prices that this location could achieve.  The current $250/sq.ft. is much more appropriate than $400.”

My question: who’s financing them?

The Stoneleigh Hotel & Spa — Really Coming Up In The World

Check out this video of the newly upgraded Stoneleigh Hotel & Spa. My my, how times have changed. I love this hotel — loaded with Dallas history but recently polished to the T.

PS: What about the condos?

Costa Rica Cache

Met with a gentleman today who furthers my great feelings about this beautiful South American Central American country and tells me how Americans are flocking to buy beautiful properties in what was once Ollie North land. Mountains + ocean + a great, educated population + lower cost of living = I’m there! Where else can you build a $3,000,000 home by Dallas standards for $1.2 and you are only 3 air hours away.