Consortium 'pretty close' to finding backers for Connaught project, Battaglia says
Massive renovations are planned for the Royal Connaught Hotel, the 1916 downtown landmark.
Consortium 'pretty close' to finding ...Group insists downtown venture still a go despite cash woes
Nicole Macintyre
The Hamilton Spectator
(Oct 24, 2007)
Nearly three years after promising to revamp the Royal Connaught Hotel, investors are still trying to find financing for the project.
"We're pretty close," said Tony Battaglia, spokesperson for the group behind the massive renovation.
Rumours have been swirling for months that the hotel is for sale or the project is in trouble, forcing Battaglia to continually reaffirm the venture is still alive.
"It's frustrating, but rumours are part of life," he said.
Gord Moodie, the city's co-ordinator of downtown municipal incentives, remains optimistic about the project, which is seen as a key part of the downtown plan.
"I think the next couple of months will tell the story."
But even if the project falls through, Moodie said he's already talked to other hoteliers who are interested in the property. "Either way it's going to fly."
The Connaught went into receivership and closed its doors in November 2004. A couple of months later, the local consortium bought the 1916 landmark for $4.5 million.
The group -- including businesspeople such as Battaglia, hotelier Oscar Kichi, builder Ted Valeri, union head Joe Mancinelli and banker Mario Frankovich -- promised to return the hotel to its former glory.
Since then, the project has encountered numerous design challenges, which have now been settled, said Battaglia.
The current plan includes a revamped hotel under the Renaissance name of the Marriott chain and a condo tower at the back.
In August, the city approved a $3.4-million downtown revitalization loan for the condo portion of the project. The money doesn't flow until the construction is well underway.
Finding financing for the hotel portion of the costly project has been a challenge, forcing the group to expand its search for a willing investor, said Battaglia.
"It's a complicated project."
The businessman recently moved his office out of the Connaught.
He said the move would have been necessary during renovations and he preferred to leave now, instead of the winter.
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