Dallas is set to market bonds this week for the notorious Dallas Convention Hotel. Though just what said "marketing" will entail is unclear. Perhaps more materials like this?
The marketing is in anticipation of the bond pricing which is slated for Aug. 19. At least $514 million dollars in bonds will be available for those interesting in investments Moody's Investment Services has rated as A2 (about average).
"Bonds which are rated A possess many favorable investment attributes and are considered as upper-medium-grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment some time in the future," the service says.
Moody's also issued a document elaborating on the reasons for their rating, based mainly on some hard realities:
"Nonetheless, in Moody's opinion many cities are cying for a relatively fixed number of conventions, and Dallas has strong competition both regionally and nationally, Texas-based competitors include San Antonio, Austin, Houston, and the 1,500-room Gaylord Texan located in close proximity to the Dallas-Ft. Worth airport. National competitors include San Diego, Chicago, Atlanta, New Orleans, and Phoenix. Revenue per available room for hotels in downtown Dalals dropped in 2009 (YTD-April) by over 15 percent as a result of both the competitive nature of the convention industry as well as the softness of the regional and national economy," it says.
Holly LaFon has written and worked for various local publications including D Magazine and Examiner.