The Smith Hotels

One of the most outrageous illustrations of abuse is the case of the "Smith Hotels". Marc Smith, a New Orleans businessman, owns two "boutique" style hotels located within a block of each other in the heart of the French Quarter. One is the St. Louis, a full service lodging facility just off Bourbon Street at 730 Bienville Street. According to public records, the five story hotel opened in 1970 and contains seventy-one guest rooms, a four star restaurant (the Louis XVI), a cocktail lounge, three small meeting rooms and an enclosed outdoor patio and courtyard. The other is the St. Ann/Marie Antoinette hotel in the 700 block of Conti Street. It has sixty-one rooms, a small breakfast restaurant, a cocktail lounge, an outdoor swimming pool and courtyard.

The 730 Bienville Partnership whose officers include Marc C. Smith as President, his son, Brett Smith as Vice - President, and his brother J.B. Smith as Treasurer controls both hotels. The Smith family bought the hotels from the estate of William Henderson in May, 1980, for $8.5 million. Mr. Smith also once owned two other hotels, the nearby Prince Conti and the Marie Antoinette, during this same period.

In 1988, Marc Smith filed for personal bankruptcy. Two years later, the partnership sold its hotels to the Westinghouse Development and Management Corporation. $6.7 million of the purchase price was paid directly to the secured creditors, who had agreed to the repayment of what was owed them at a substantial discount, as payment in full. Westinghouse then granted the partnership an option to buy the hotels back at a predetermined price. With financing from Louisiana Public Facilities Authority bonds in the amount of $8.9 million, the partnership was able to buy the hotels back again in 1993.

Since then, the hotels have operated profitably in the midst of the ongoing boom in the New Orleans convention/ tourism business. Both room rates and occupancy increase significantly during periods of highest demand such as Mardi Gras, Sugar Bowl or when big conventions are in town. Occupancy rates average from 75 to 82% year round and 100% during peak seasons. Average room rates during the ever-shrinking slow season are in the range of $89 a night for single rooms and $109 for suites. Rates during peak seasons average $250 to $279 for single rooms and $350 for suites.

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