Person Learning He Also Complimented Parents’ Patience on the First Day

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Person Learning He Also Complimented Parents’ Patience on the First Day Public Records & Notices Monitoring local real estate since 1968 View a complete day’s public records Subscribe Presented by and notices today for our at memphisdailynews.com. free report www.chandlerreports.com Wednesday, August 12, 2020 MemphisDailyNews.com Vol. 135 | No. 111 Rack–50¢/Delivery–39¢ COVID-19 credit crunch could shrink hotel pipeline WAYNE RISHER Then COVID-19 hit, people good number of those 50 projects will be pushed back in the time- The American Hotel Lodg- Courtesy of The Daily Memphian quit traveling and staying in ho- that will be off the table,” said line,” Pinkowski said. ing Association estimated about The Memphis area had 50 new tels, and lending for new real es- Chuck Pinkowski, an indepen- In addition to the number of 8,000 hotels, approximately 16% of hotels on the drawing board, in de- tate development, especially ho- dent hotel industry consultant in hotel rooms perhaps not growing, the total, could go out of business velopment or under construction tels, dried up. Memphis. national industry experts have by September without extraordi- in February. That pipeline would When hotel pipeline numbers “And the ones that stay on the warned there’s a threat of hotels nary efforts by government to help have added 6,845 rooms or 28% of are updated later this month, “I list, except for the ones that are going out of business because of the current supply. think there’s going to be a pretty under construction, all of them the pandemic. HOTEL CONTINUED ON P2 decided to go all virtual initially, while others like Millington and Lakeland offered in-person learn- ing for students. Several schools return to in- Griffin acknowledged they provided masks for those who didn’t bring their own but most did. “Everything from X-men to puppy dogs,” he said of masks. “It’s a fashion show.” person learning He also complimented parents’ patience on the first day. Often in the past, parents walked their youngest students to class, but schools are trying to limit the number of people in buildings. Therefore, they couldn’t this year. Griffin said there were less tears than he feared. Superintendent Ted Horrell and Lakeland School System students also returned Monday. He said the majority followed safety guidelines, an added ele- ment to how the first day of school would normally look. “We are getting back to our core business of teaching students.” Things ran well, he said, although the carpool lines were slightly longer than usual as parents pre- fer to drop off their children on the first day. Addi- tionally, parents have been asked to not send their children on the bus unless it’s absolutely necessary. Horrell walked the halls, greeting teachers and students. About 20% of students are learning remote- ly this year. He also said hello to some of them as well. He said kids had places to go and teachers are following the additional steps that have been asked of them. “It’s been since March for most (students),” he said “It’s the longest they’ve been without being in a school and now it’s really on us to make sure we don’t loosen up on things we need to be tight on.” Other suburban schools will begin Monday, Au- gust 17. The first day of school at First Assembly Chris- Millington High School teacher Hank Hawkins (left) gives students an elbow as they head toward the buses after the first day of tian School on Walnut Grove in Cordova was far dif- classes on Monday, Aug. 10. Due to the pandemic, Millington students are on a hybrid schedule. The high school, which normally ferent than any other due to COVID-19. Still, it was has 500 students in the building, will now have roughly 250 students on any given day. (Mark Weber/Courtesy of The Daily Memphian) an exciting one for Bryan Sanders, the head of school. ABIGAIL WARREN, OMER YUSUF first time in nearly five months. back for the first time since March. “The thing that’s been exciting to me is recogniz- Courtesy of The Daily Memphian It was a “very smooth morning” for School districts and private schools ing the need these students have to be in community, Millington, Lakeland and a handful Millington Municipal Schools, accord- throughout Shelby County are ap- to be with one another,” Sanders said. “It is good for of private schools opened for the first ing to Superintendent Bo Griffin. He was proaching reopening for the 2020-21 their mental health. We’re doing every reasonable day of in-person learning Monday as lo- pleased with students’ efforts to social school year in different ways. Some cal students returned to classes for the distance and excited to welcome them districts, like Shelby County Schools, LEARNING CONTINUED ON P3 INSIDE Public Records ................ 4 Public Notices ............... 15 memphisdailynews.com chandlerreports.com Marriage licenses are unavailable ©2020 The Daily News Publishing Company A division of The Daily News Publishing Company while Shelby County Clerk’s O ce Memphis, Tennessee The standard for premium real estate Established 1886 • 135th year information since 1968 reviews internal policies for its digital Call 901.523.1561 to subscribe Call 901.458.6419 for more information platforms. Page 2 MemphisDailyNews.com Wednesday, August 12, 2020 HOTEL CONTINUED FROM P1 product, while One Beale’s multifamily them.The Memphis area has about 240 ho- component, The Landing, is ahead of sched- tels. Pinkowski said some probably won’t ule, expected to begin pre-leasing in Octo- make it through the pandemic, though he ber rather than early next year, Carlisle said. wasn’t sure how many. “Generally the new construction, full- More than a third of the proposed new service, limited-service hotel financing hotels, accounting for nearly half the rooms, market is closed,” Carlisle said. “It’s not are in the Downtown area, which was riding even trickling. It’s closed, with the excep- a wave of new mixed-use development and a tion of hotels that were approved, under- booming tourism market before COVID-19. way or started construction before the Downtown Memphis Commission pandemic. There just isn’t any money for president and chief executive officer Jenni- hotels,” he said. fer Oswalt is optimistic all 17 hotels in the “It is a tighter credit market, and you Downtown pipeline will eventually be built. have to have a compelling reason to do The commission in April granted 90- something, and we have a compelling proj- day extensions for projects that had previ- ect,” Carlisle said. ously been approved for tax abatements, Carlisle said the second hotel loan which included a number of hotel projects. hadn’t closed yet, and some conditions had “So far nothing is canceled or complete- changed after COVID-19 set in, but, “Our ly off the table, just delayed,” Oswalt said. bank is standing by us.” Lenders are understandably skittish As to whether COVID-19 and the financ- about loaning money for projects for which ing will squeeze projects out of the pipeline, there is no clear path to recovery. Carlisle said he’ll be watching the Loews They don’t want to take on new hotel project closely.“If Loews doesn’t get done, projects in loan portfolios at a time after nothing will get done,” Carlisle said. some existing owners sought relief on debt Loews didn’t respond to a request for payments after occupancy and nightly rates updated project status.The Walk on Union’s The sun sets over the Hyatt Centric hotel at One Beale Aug. 7, 2020. Construction continues tanked in the spring.Investment in the hotel lead developer Kevin Adams last week sub- for the project despite the concerns from the coronavirus-plagued economy that many sector fell 91.2% in the April-June quarter, mitted a request for restructured incen- similar projects are facing. (Patrick Lantrip/Courtesy of The Daily Memphian) the largest year-over-year decrease of any tives. Adams is asking to convert previously sector during a period in which total invest- approved tax increment financing into a construction, it’s a really tough debt market Memphis hotel pipeline estimates are ment volume fell 69.9% to $40.2 billion, ac- traditional tax abatement.The Downtown for construction,” said Greg Friedman, chief being updated in preparation for a virtual cording to a CBRE Research report on U.S. Memphis Commission also is proposing to executive officer of Peachtree Hotel Group presentation that will take the place of the capital markets.CBRE’s look at U.S. lending make a new incentive available for larger in Atlanta.“Candidly, it would have to be a canceled Southern Lodging Summit later in the second quarter said, “We anticipate full-service hotel projects within the Down- relationship bank that’s going to finance this month.“Some responses we’re getting that commercial mortgage markets will re- town tourism development zone, including anything today, I would think,” Friedman is, ‘Yeah, that deal is still alive but it’s pushed main muted over the near-term, especially The Walk. said.Friedman and Chris Ropko, chief fi- back six months or a year. Some of it is prob- for retail and hospitality properties, as well It’s a tourism surcharge of up to 5% of nancial officer of McNeill Hotel Company ably not going to happen,’” Pinkowski said. as value-added deals, which face the great- sales generated within new hotels of at least in Germantown, were on a webinar panel “What I’m hearing from my conversa- est underwriting challenges. In addition, 250 rooms and mixed-used developments discussing COVID-19 impacts on the hotel tions with lenders and people who are try- underwriting will likely remain conserva- with hotels of at least 150 rooms.
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