06.20.2007 10:26 am
Hotels enter a fiscal Renaissance
St. Louis Post-Dispatch
The Renaissance Hotels in downtown St. Louis reached a milestone last week in their financial turnaround: For the first time, they managed to make an interest payment without dipping into reserves or borrowing money from their owners.
A notice to bondholders says that the $3.5 million semiannual interest payment was made on June 15, and that âthese funds were all generated by cash flow from the Hotel.” It’s the first time the Renaissance has been able to say that. The Renaissance Suites opened in 2002 and the Renaissance Grand opened in 2003.
Reflecting the hotels’ improved finances, their bonds due in 2028 traded recently for 99 cents on the dollar, up from a low of 61 cents on the dollar in late 2005.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
