Marriott Hotel project stalls over financing - Birmingham Business Journal:

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is in negotiations with to finance the which was announced more than ayear ago, said Harry president of Harbert. The company originally hoped to open the hotel inlate 2009. Now, Harbert is shootint for 2010. Lynch said he’a hopeful that negotiations will be finalized in a matterfof weeks, rather than so construction can begin soon on the 261-room hotelo across from Regions’ current headquarters on 20th Streetf North. Lynch said the delayu will be helpful with constructionmateriap costs, which have lowered in the economifc downturn, and it buys time to find a steak housew restaurant interested in locating in the hotel.
The scenario is similar to scenes being played out across the country betweenh developersand banks, said Stefan Norrbin, chairmajn of the economics department at ’se . “What’s happening in the financial banks and financing companies are shoring up theird own balance sheetsand there’s no traditional lending,” he “It’s created a problemn for people to borrow in the normal way.” Norrbinn said banks are being very selectivre right now because they have a chancs to be selective, choosinv the projects they want to do. That will ease as projectsw banks got burned on are slowly clearef offthe books, he said.
Harbert’s Lynch said plansd to include high-end amenities in the new hoteloare unchanged. The hotel is set to includer 261 rooms, suites on the top a lounge on the 18th floofr and inthe lobby, a in the lobby, an adjoining steak house restaurant, a 5,000-square-foot granfd ballroom, meeting rooms, heated pool and spa and possibly a high-enf fitness club. Lynch said the hotekl won’t be built to attract convention but to service the clientele of the surrounding businesses and law firmwin downtown. “Our core demand is stilol based onthose businesses,” he said. Harberr announced in mid 2007 it wouls partner with to opena four-star Marriott Renaissanced hotel downtown.
Since the announcement, Regions has vacated the building and construction has started to add more parkiny spaces to the adjoining deck to accommodate guests of the Harbert also is developing a retail center in a new development at the site of theformefr . Ground was broken on the more than 13,300-square-fooy center in November.