Supposedly due to unfavorable construction financing terms, the 1 Hotel had redesigned its project structure in February by converting the slow-selling condos into additional rooms. In fact, according to Avalon Holdings, only 25 condo-suites had been sold through February -- and they were planning to sell 176. Yikes.
But Starwood Capital claims the project is still going to be developed in the near future, and they now have complete control since they own 100% of the project.
Admirably, Starwood's Vice President of Asset Management, Dan Schwaegler, maintains his confidence in the Seattle project. He told the Post-Intelligencer:
"We believe that Seattle is the perfect location for a 1 ecologically focused hotel and residential project, and know it will not only be successful, but also a welcome addition to the Seattle landscape."
Although the Seattle 1 Hotel seems like a really great and unique addition to the city's hotel scene, the hotel has a lot to overcome. Years of development, a need for plenty of financing, and a struggling economy will definitely not help the project.
It just shows us that no matter who you are these days -- even if you're Hotelier Extraordinaire himself Barry Sternlicht -- you can encounter major development obstacles.