company says has been unprofitable since the dot-com bubble burst in 2000. The hotel will close in mid-November, most likely permanently,
the company said, and 199 employees will be cut loose.
The golf club, which has 300 members, likely will remain open and will service events, albeit with reduced services.
The Quail Lodge news comes less than a month after the owners of the new 130 room Homewood Suites in La Quinta decided to shut down the hotel. “We are now starting to see owners and lender’s closing down hotels as it is less expensive for them to do this,” Alan Reay, president of the hotel brokerage firm Atlas Hospitality tells GlobeSt.com. “This is a trend that we expect to see a lot more of in the coming months.”
Hong Kong and Shanghai Hotels Ltd. acquired the hotel indirectly in 1997 as a wholly-owned subsidiary. Neil Galloway, the company’s chief financial officer said on a conference call that despite funding “tens of millions of dollars” in cap ex and operating losses to maintain the property as a AAA/Four Diamond property for the past decade it “has suffered a net loss every single year for the past eight years of operation…even in 2007, generally a record year for the hospitality industry.”
“The closure is expected to be permanent,” he added. “We see no realistic chance of turning around the financial fortunes of quail lodge with all future financial projections showing continued losses.”
The board of directors also issued a printed announcement in accordance with the Worker Adjustment and Retraining Notification Act, which requires that employers of more than 100 give notice 60 days in advance of mass layoffs. “With the amount of revenue that Quail Lodge can generate, as compared to its current operating costs, fixed overheads and capital expenditure requirements, the Board has come to the conclusion that it is not possible to operate Quail Lodge on a financially viable basis,” it said.
There are no plans for the sale or redevelopment of the property, either, Galloway said.
http://www.hshgroup.com/uploadedfiles/Investor_Relations/Corporate_Announcements/Announcements/pdf/E045QL.pdf
Your posting is confusing and misleading – Quail Lodge in Carmel CA has nothing to do with Pebble Beach Resorts in Pebble Beach CA. Your photo is of The Lodge at Pebble Beach yet you make no reference to it. And what does your headline mean? I live in Pacific Grove and people not familiar with the area would definately get the impression that the two resorts were somehow related which they are not.
You have a point… I changed the photo to reflect the Saturday "The Quail" event held at Quail Lodge in Carmel. My headline refers to "The Quail" event being synonymous with the Sunday Pebble Beach Concours d'Elegance show as people attend both as I did this year. Many people I know wait till the tickets go on sale for "The Quail" event so they can purchase them and make a weekend out of all the different events happening in the area.. from all the auctions, races, events, including the Concours. Sorry for the confusion and would like to go on record saying that Quail Lodge is not where Pebble Beach Concours d'Elegance is held but where "The Quail" Saturday event is held.