Mall of America gets luxury hotel on the Fed's dime

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If there was a strong demand for a luxury hotel at the Mall of America, private companies with strong financial integrity would be lining up to build this hotel. It is simple economics, if there is a high probability of achieving strong cash flow and profits - this hotel would have been built years ago. If a luxury hotel so important to the Mall of America, why have not the Mall owners built this hotel?

"If you build it, they will come"...is a recipe for failure. Like all other business, it is the law of supply and demand that will determine which hotel will be successful.

There are thousands of hotel rooms surrounding the Mall of America. In the past there was a hotel adjoining the Mall of America that certainly met the "luxury" criteria. But it is no more. What does that tell you?

Creating jobs is not a real good reason to justify building a hotel. Consummer demand for a luxury is what should justify this project, not a one-time slush fund.

8-21-2010 @ 9:20AM

Trixie said...

There has never been a hotel "adjoining the Mall of America". I have lived here my whole life and to to the MOA at least once a week. Just like when they did the nationwide search for the best sites to build this mall, Mps/St Paul won because it is very white collar, high tech, high disposable incomes. The area is very cosmopolitan and there is alot of money there! They literally have people flying in on charters from as far away as Japan every day, and have more visitors every day then Disney World! There were nay-sayers when this was built that it would never work, and they have proved them all wrong. We need a higher end hotel attached, as the other ones surrounding it are good, but not 4 or 5 star. I have no doubt this hotel will succeed. I can't wait!

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