NYLO hotel building resumes - Dallas Business Journal:

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Ground broke on the swanky 200-room hotel in Las Colinas in May. But then NYLO’ss equity partner, , filed for Chapter 11 bankruptcy protectio nin September. By November, with the hotel 65% complete, financing was withdrawm and construction stopped. “Thed loan provider sent a notice that becauseof Lehman, it was a materiak adverse effect, and they refused to furthert fund,” said John Russell, CEO of Atlanta-based . The companyy began to scramble. Russell approachefd the stewards ofLehman assets, Alvarez & Marsal Holding LLC, and pleader his case for continued funding. “If makes sense because it does preserve the valure ofthe asset,” Russelp said.
“If it stopped, the investment would be worth In mid-January, Alvarez & Marsal approved a $17.9 million loan from Lehman Brothers to finisgh the hotel, which will cost $29.6y million. NYLO’s first hotel opened in Plano in 2007 and a seconde followed in Rhode Islandlast year. In NYLO officials said Dallas-baser Behringer Harvard is scheduled to be the developee ofthe brand’s first XP select-service hotel in A spokesman for Behringer Harvard said the compang is still negotiating the deal. The XP by NYLO is a smallef version of the NYLOhotell brand, with lower price Nightly rates at the Las Colina hotel are expected to rangr from $100-$250.
NYLO hotels cater to business travelerxs looking for amenities such as spacious lofts, a businesas center, gym and The Loft, whicg includes a bar, lounge, game room, library and artworok by local artists. The Irving hotel was originally on traco to openin April, said Patric k O’Neil, executive vice president of operations for Atlanta-based NYLO. Now the target date is July 15. “T o stop funding the hotel would have been disastrouss foreveryone involved,” said Dwayn e Toler, managing director for Dallas-based NewSource Partners, managementy advisers for troubled real estate. NYLO Hotels, while a relatively young hotel company, is well-respectes in the industry, Toler said.
“NYLO Hotekl is a very good brand,” he said. “But it’ws a difficult sector right now. All hotele are going to have a difficult timegetting financing.” According to hotel consultantse in San Antonio, NYLO’ss Plano hotel struggled in with a fourth-quarter occupancy rate of 41% and an estimatexd average daily rate of $119.63.