Monday, November 17, 2008

What a difference a "year" makes....

You may doubt the old expression "what a difference a day makes" but there is little doubt in "what a difference a year makes" especially if you are trying to sell a hotel chain... It's unfortunate for Rodd Hotels but their timing couldn't have been worst when they announced last November they were up for sale. It appears they weren't ready for the sale as it took until June of this year to get their "Acquisition Opportunity Packages" out to prospective buyers and by that time buyers like ourselves were off pursuing other opportunities. We probably would have taken a shot at them but their consultants were trying to play both sides of the fence. What I mean by this is they were calling for individual bids on a single property, or groups of properties, or all the properties en bloc.... kind of like having your cake and eating it too... it was kind of hard to seriously invest money into developing an offer to buy the whole Company when behind closed doors they could decide to sell off a couple of the properties which would have thrown off assumptions purchasers may have been considering... but hey I certainly don't know as much as those high priced consultants. But I do know there doesn't seem to be much going on and in the year since the announcement a lot has happened, the economy is in the toilet, it was a horrible summer, occupancy in these properties was severely down, and the money markets to finance this type of deal have totally evaporated... there were rumours that the Charlottetown Hotel and the Yarmouth properties were sold but no real evidence.... so it begs the question why would they sell at the bottom of the market? and what is the Province doing to see that there is new reinvestment in our Island Resorts going into the New Year… in any event let’s all hope that some new investment opportunities come forward for the properties as they help lure people to our golf courses and we surely need an income boost here….
Rodd's announced they were up for sale P.E.I. watching Rodd hotel chain sale
Last Updated: Wednesday, November 28, 2007
CBC News
The government of Prince Edward Island will be keeping a close eye on the fate of Rodd Hotels and Resorts, now that the Island-based chain has been put up for sale.
The company, the largest privately-owned chain in Atlantic Canada, announced it is putting its properties on the block Wednesday.
"The Ernst and Young company, that will be acting as their advisers, they have sort of opened the door for us to be able to keep in communications with them so that we have an idea of what's going on," said Tourism Minister Valerie Docherty.
Docherty said the province and the company had a close relationship, but would not reveal specifics of how much provincial money was invested in the hotel chain.
"It's not for me to speak specifically about the financial relationship. But because of it, this is another reason why we're going to keep those lines of communication open, so that we make sure that the interests of the province are looked after," she said.
Docherty said officials in the Development Department have the exact figures on the Island's investment.
Officials in the Island's tourism industry were expressing their regret about the sale Wednesday.
Rodd Hotels and Resorts have been part of the industry for more than 60 years.
"It's a sad day for the tourism industry on Prince Edward Island and a sad day for industry as a whole," said Kim Green, CEO of Tourism Charlottetown.
"There was a lot of trickle effects of Rodd's being located here on Prince Edward Island, from buying locally and so forth, so it's sad. It's very sad."
Judy MacDonald, president of the Tourism Industry Association of P.E.I., described the Rodd name as something of a symbol for tourism on the Island.
"A little bit of sadness that the Rodd name perhaps may not be attached to this business that has been such an important part of P.E.I.'s tourism, and of course one I think that tourism operators and industry members have looked up to in terms of leadership and example," said MacDonald.
Docherty also expressed some personal regret at the announced sale, noting her first summer job at the age of 13 was at a Rodd hotel.


Anonymous said...

Here you go again, talking your fingers off to get the attention you so crave. Is parking your Porsche in handicapped and no parking zones around town not getting you noticed enough. It is almost like you try to see how many people you can get to dislike you by acting the way you do. You are one of a kind for sure.

Tim Banks said...

I get a charge out of people who are not brave enough to use their own name... whoever you are??? don't have to read my blog... no one is forcing it on you... take a pill and chill out.