stimpy

I stay here often and it is quite busy on most weeks when there is a lot happening in Brussels. The entry prices can swing wildly between 150 and the high 200's per night, and many times I have seen it sold out. I've never tried to stay on a Friday or Saturday though. Most Sunday nights it is busy.

I think there must be more going on than meets the eye in this case. I doubt it is entirely up to room revenue.

FD1971

Being profitable as a hotel and declaring bankruptcy as an owner are two completely different things and reminds me of other typical comments on FT like 'the plane was always full, I really wonder why they cancelled the route.'

Real estate in the Benelux area is a difficult topic since some years now.

gojko88

If you had bothered to read the post properly, you would have seen that it was the operator that declared bankruptcy, not the owner. Reminds me of your other typical comments on FT

My point is that the hotel has arguably the best location in Brussels and prices to match, which is why I wouldn't normally expect profitability issues.

FD1971

^

'I' seems to be the most important word in your answer.

On a side note, they have good food there and the seats are also very nice, so they should be profitable, right?

gojko88

Exactly

stimpy

I didn't bother registering to read the article (can anyone post the full text?), but one question I have is that I would have thought the operating entity is Starwood. And of course Starwood isn't declaring bankruptcy so who are they talking about? Is there some company that sits between the building owner and Starwood?

I'll be at the hotel in a week or two and try to find out what is really happening.

KittyCat

Article from the French-speaking business journal is actually a tad different, as they consider Starwood the owner (vs. Swiss Hotel Leasing Cy in the Dutch article). Also extra in the FR one is a note on (potentially un-allowed) staff sharing between LM and Sheraton

From 'De Tijd'
"Hotel Le Meridien in Brussel, dat pal tegenover het Centraal Station gelegen is, op slechts enkele minuten wandelafstand van de Grote Markt, is woensdag failliet verklaard. Dat maakte de Brusselse schepen voor Toerisme Philippe Close (PS) bekend.
Aan de basis van het faillissement ligt een conflict over de huur tussen de exploitant van het hotel en de eigenaar van het gebouw. Dit tastte de rendabiliteit aan.
Eind maart verzocht Starman, de exploitatievennootschap van het luxehotel, al om bescherming tegen zijn schuldeisers, zo was eerder in vakbondskringen te horen. Halfweg mei vroeg de eigenaar van het gebouw, Swiss Hotel Leasing Cy, het faillissement aan van Starman. Volgens het openbare ministerie waren alle voorwaarden daarvoor niet vervuld, waardoor de uitspraak op zich liet wachten.
Volgens de jaarrekening van 2013 die op 14 april werd neergelegd, boekte Starman een verlies van 2,8 miljoen op een omzet van 13,95 miljoen euro . Daardoor is het eigen vermogen nu 6,3 miljoen negatief op een balanstotaal van 3,6 miljoen en bedraagt de financiële schuldenlast 41 miljoen. Uit de toelichting blijkt dat de maatschappij al jaren moeilijkheden heeft om zijn huur te betalen en Swiss Hotel tevergeefs om een reductie vroeg."

From L'Echo
"Les problèmes de l'hôtel situé en face de la Gare Centrale sont liés à un conflit concernant le loyer entre le gestionnaire des lieux, la société Starman, et le propriétaire, le groupe Starwood.
L'hôtel Méridien, situé Carrefour de l'Europe, à proximité de la Grand-Place de Bruxelles et juste en face de la gare de Bruxelles-Central, a été déclaré en faillite mercredi après-midi par le tribunal du commerce de Bruxelles, a indiqué l'échevin bruxellois du Tourisme Philippe Close (PS). Christian Bouchat, secrétaire régional de la FGTB pour l'horeca bruxellois, annonce que 140 travailleurs sont concernés.
L'origine de la faillite est un conflit concernant le loyer entre la société Starman, gestionnaire des lieux, et le propriétaire, qui est le groupe Starwood. La rentabilité de l'hôtel est ainsi atteinte. Les recettes sont supérieures aux dépenses à l'exception du loyer de plus de 300.000 euros par mois. Le curateur peut donc sans risque continuer l'activité, d'autant plus qu'il est possible de recourir au chômage économique.
Une solution encore possible?
Philippe Close n'envisage pas la fermeture, estimant qu'une solution peut être trouvée par le curateur avec l'actuel exploitant, ou bien le suivant: "Il y a un problème de rentabilité immobilière au niveau des hôtels. C'est le paradoxe de Bruxelles. Le secteur touristique se porte très bien et il y a une progression notable des nuitées, mais le revenu par chambre est encore trop bas".
Christian Bouchat précise qu' "il est apparu, lors de l'examen du dossier, que 8 travailleurs au minimum se trouvaient sur le payroll de la société Starman alors qu'ils travaillent au Sheraton sous l'autorité de cadres ayant des contrats Sheraton. Il s'agit de mise à disposition interdite. Les contrats de ces travailleurs doivent être transférés immédiatement au Sheraton"."

KittyCat

All staff has been fired, no clarity yet as to 'notice period' and if/when part of them would be re-hired under a re-start logic

http://www.lesoir.be/565514/article/...dien-licencies

stimpy

What the hey!?!

I wasn't taking this that seriously. I have a reservation coming up soon! Lurkers? Is this for real?

Starwood Lurker

Following the bankruptcy of Starman Bruxelles Hotel SPRL (Starman Bruxelles), the lease holder of Le Méridien Brussels Hotel, the property has been forced to close its doors as of 7th June 2014.

The forced closure of the hotel is, as we understand, to be seen in the context of an ongoing legal dispute between the lease holder, Starman Bruxelles, and the owner of the building, Swiss Hotels Leasing Company (SHLC), regarding outstanding rent payments owed by Starman Bruxelles.

Le Méridien has successfully operated the hotel from the day of opening in 1995 and since 2005 under a long-term management contract with Starman Bruxelles. Le Méridien is not party to the rental dispute and is not subject to bankruptcy.

Le Méridien is exploring all possibilities that will hopefully enable hotel operations to resume soon. In the meantime, management of Le Méridien Brussels are working with all current and future clients to secure alternative accommodation in the city. We understand the impact on our valued and loyal guests and sincerely apologize for the inconvenience caused.

Best regards,

William R. Sanders
Social Media Specialist
Starwood Hotels & Resorts Worldwide

[email protected]

stimpy

Thanks William. I'm still a bit shocked. Nothing ever moves this fast in Belgium, although I gather the dispute itself is long running.

Sorry to all the great staff at this hotel. I hope they are ultimately taken care of.

spellbound2

whoa! I should have been reading Flyertalk. We just returned from dinner to see this on the tv. We were hoping to get a late check-out, but no more. Anyone know where we can store luggage?

https://app.box.com/s/gh4cqo3n3kvw34b7l9nh

Condition One

Hope the LM reopens soon. It's one of my favorite SPG properties, as far as location goes, anyway.

dcstudent

Wow, feel really sorry for the guests there now. Wonder what *wood will do with them when they get kicked out tomorrow at noon. Not only is it terrible that the guests will have to spend a day of their trip packing/moving, I can't imagine it's easy for *wood to find a ton of empty rooms at comparable hotels on short notice.

Ghentleman

Central Station across the street has automatic luggage lockers.