What can we learn from this?
For some reason, it appears that building hotels next to city convention centers is a honey pot for politicians. I am not sure why, but my guess is that they spend hundreds of millions or billions on a convention center based on some visitation promises. When those promises don’t pan out, politicians blame it on the lack of a hotel, and then use public money for a hotel. When that does not pan out, I am not sure what is next. Probably a sports stadium. Then light rail. Then, ? It just keeps going and going.
Two examples are offered, in Phoenix and in Baltimore, where city-owned hotels next to convention centers have dropped tens of millions of dollars. This is, of course, easily explainable:
All the companies who chose not to build a hotel with private money obviously knew what they were doing, and only the political benefits of pandering the the public at large and a few special interests in specific made it seem like an attractive investment to city politicians. Which is all pretty unsurprising, since hotels have pretty much been built off every exit ramp in this country, so there seems to be no private inhibition towards building hotels just towards building hotels in bad locations.
Which shows you how far behind the curve we are in the Big Breezy: we haven’t even selected our bad location. Yet.