Revenue should not be the concern. Even in the face of ever falling occupancy, the supply of newer rooms within the marketplace will continue to deliver revenue consistently and probably with a very slight average annual increase over time. This was never the concern.
The problem that neither Mr. Molloy nor his or this project’s backers will tackle is the potential for cost increases in line with the vast majority of these centers nationwide. The hotel tax revenue to the center will not go down by 20+% BUT his expenses could explode by 50, 100 or even 200%.
That should be the fear that everyone is this County needs to consider and understand.
The expense side of the equation was NEVER discussed. We simply were told to accept those who said it will lose $600K to $1.2 million per year as gospel. What if the loss is $2, $3 or $4 million? Then what?
The great myth of Gib Armstrong…”the hotel tax is stable therefore my project is stable”. Trust me, it is a myth and anything but stable…
