Tucy wrote:Addison wrote:Tucy wrote:
Whether it's "minimal" or not is pretty subjective.
It's not subjective. The impact of their involvement is objectively significant.
And to reiterate why, the big selling point for the Condos in these project is that you'll have access to Four Seasons amenities. If Four Seasons decides to pull out because it's progressing too slowly, the developer will find it even harder to sell condos, effectively killing the entire project (although that may still happen even if Four Seasons doesn't abandon the project, because again, it's Dallas which has an unusually weird/slow condo market).
Just as well, if Four Season really wants to operate hotel rooms in Dallas again ASAP, they would have no problem finding a developer who can deliver a faster product, or get the subsidies they need from the city in the event they can't find a developer competent enough to secure financing or willing to put their own equity on the line.
And, it is objectively clear that there are other very high-end (and equivalent) hotel operators that would happily jump in to the project if Four Seasons dropped out.
Very doubtful.
Four Seasons of course was low-hanging fruit because they were losing their existing hotel in this market and DFW has proven to be successful for them in the past.
You keep mentioning Mandarin Oriental, but even they have been mum about their Dallas aspirations since their Turtle Creek project has gone up in flames (the website hasn't been updated at all).
Besides those 2, no other operators of similar caliber has expressed interest in Dallas. St. Regis did pre-Great Recession, but they've been radio silent since then.
This appears to be a very qualified experienced developer of high-end hotel and hotel/condo properties.
The point is, they're not the only developers who can deliver high-end hotel projects. Four Seasons just may not have a problem with how slow this developer is moving right now. That could change.
And, agains, Four Seasons does not build or develop hotels; they would in no case be the ones going to the city seeking subsidies. (I know Dallas has subsidized some pretty crazy stuff, but do we really think even Dallas would subsidize the development of an uber-luxury hotel and condo project?)
How it would work is the developer would go to the city to request the incentives on Four Seasons' behalf.
And while it may seem crazy, beside the Omni example, there are cities that have given subsidies for hotel projects in the past.