Embassy Suites South Lake Tahoe being rebranded
By Kathryn Reed
The days are numbered for Embassy Suites South Lake Tahoe – the largest hotel in the city limits.
In a statement to Lake Tahoe News from Hilton Corp., the parent company of Embassy, it says the owners of the hotel “decided to terminate its management agreement with Hilton Worldwide.”
It goes on to say, “The resort will continue its day to day operations without disruption of service under the terms of the management agreement with Hilton Worldwide until March 31 or a date to be determined by the owner.”
Embassy Suites South Lake Tahoe will soon have a new name. Photo/LTN file
It will be called Lake Tahoe Resort Hotel. All 220 employees will keep their job. PHR Management Inc., an affiliate of Ken Corp., will be operating the hotel.
The hotel has been an Embassy Suites since it opened in December 1991. And it has been in and out of financial trouble for those 21 years.
Bill Cottrill, director of sales and marketing for the local Embassy Suites, did not return multiple phones. Dominic Acolino has been replaced by former General Manager John Steinbach to operate the nearly 400-room hotel.
When calling March 4 to inquire about booking a room in April, the reservation’s employee knew nothing about the change in hotel management. He also said the signature breakfast and manager’s cocktail receptions would be available. Whether this is true next month and beyond remains to be seen.
Hilton PR deferred comments to Masaru Saito with Roppongi-Tahoe Lp. Saito never picked up his phone and voicemail was not available. Max Saito with Ken Corp. did not return multiple calls.
Roppongi-Tahoe Lp, a subsidiary of Ken Corp., has owned the property since 2000. Ken Corp. bought the property in a bankruptcy deal. KOAR-Tahoe Partners was unable to keep up with it payments to Mitsui Trust & Banking Co. The firm had a $53 million seven-year construction loan because it was trying to convert 188 of the rooms to time-shares.
Ken Corp. in February 2012 defaulted on a bond payment and later in the year faced foreclosure. How the finances have been restructured for this ownership group to retain the hotel is not known. Nor is it known where the $5 million to $7 million in upgrades that are expected to start this summer will come from. In December 2006, the hotel underwent $3 million in renovations and has often been recognized for its environmental innovation.
While the owners struggle under debt, the hotel itself has been profitable. Embassy Suites generates the largest percentage of hotel tax on an annual basis of all South Shore properties.
I do not have allot to say here, except everything thing I read and everyone I have talked to, says its been way overpriced, and just not a good value. (A hassle) I have seen countless internet solicitations to Trade their Time here for anything else.
I know people who were just given 7 days blocks of time to stay and came away unhappy. I am not sure why but its obviously been targeting a market that does not exist
A high end room @ Harrah’s with Spa included blows them away # half the price
Embassy doesn’t have units for sale. Did you mean the Marriott?
Seems to be an ongoing pattern in South Lake Tahoe. Business failure after business failure. Taxes, regulations & bureacracy have buried many a business in South Lake.
No more timeshares! The city should not approve conversions or new construction of timeshares.
The Embassy is not a time share.
I guess all those people currently staying or wanting to book at the Embassy(part of the Hilton family) on Hilton Honors points are out of luck. The Tahoe property was one of the highest requested points locations in the continental USA.
This property also benefited from the Hilton national sales force (not the local team) in booking conventions and meetings. No points means meeting planners will take their business elsewhere.
Also no national exposure via Hilton corporate advertising. Next, the chance they will go timeshare. Finally, if this Japanese company is in financial trouble, where will the renovations and upkeep funding come from? This is a loss for SLT no matter how you look at it. Of course, maybe a deal is in place for it to become another brand like…….Holiday Inn or The second Elizabeth Lodge or part of Vail’s holdings.
Me Says—the article above says “The firm had a $53 million seven-year construction loan because it was trying to convert 188 of the rooms to time-shares.”
They may not have completed the process but it should never have been allowed in the first place.
It is time shares
The embassy at Stateline is NOT a tmeshare…you are thinking of the old Embassy Vacation Resort at Ski Run.
‘Taxes, regulations & bureaucracy have buried many a business in South Lake.’
I see this theme mentioned in the comments over and over again. I’m curious to hear exactly what, how much, and why those taxes, regulations & bureaucracy have caused this and many long term businesses to fail, as opposed to the real reason is those businesses not being run or marketed properly. And those new start businesses that fail regularly, might they not be attributed to poor financial AND business planning at least, let’s say, 75% of the time?
In response to the article and some of the comments, here are the facts:
Ken Corporation, the owner of the Embassy Suites, is committed to the Lake Tahoe area and has been for many years. The company has been an active and supportive member of the community and plans to continue that support.
As the largest hotel on the California side of South Lake Tahoe, Embassy Suites has been an active cornerstone property in this community. It offers a unique lodging option for area visitors, it’s been an active partner within the community, an environmental proponent, as well as a major tax contributor. The fact that it will be operated by a management company that is committed to retaining employees, celebrating their local experience and providing well needed funding for $5 to $7 million in hotel upgrades is a move in a positive direction and reflects the commitment by ownership in the future of South Lake Tahoe. As a re-branded boutique business we’ll have the opportunity to move in new directions overseen by local management. This change to PHR Management, Inc., will allow the hotel to showcase Lake Tahoe and the extraordinary lifestyle it offers to our guests.
The new Lake Tahoe Resort is and will be strictly a hotel–time share is not a component.
The financial issues mentioned in the article were resolved to the involved parties satisfaction.
We will not be promoting a national brand but 100% of our advertising will go to promote the Lake Tahoe destination.
Convention business will continue to be a major portion of our success.
Ken Corporation, LTD., the owner of the hotel, has been internationally successful company specializing in asset management, real estate investment, international real estate, office and retail real estate, property management and residential leasing.
All of us at the Lake Tahoe Resort Hotel look forward to a successful future with the community.
John Steinbach,
General Manager
Lake Tahoe Resort Hotel
You mean “Crime Share” – not time Share.
Biggerpicture, its not fair to say businesses fail because of regulation, but its also not fair to ignore the regulatory environment either. First there is just no getting around 6000 jobs lost from the casinos. That has devastated the City where most people lived. That is not getting better. On top of that, many projects in Tahoe have been funded by a grant called SNPLMA. That grant was funded by land sales in Las Vegas. Guess how thats going? So we have an environment of crushing job losses from the primary employers; gaming and environmental restoration. That cycles through the entire economy, restaurants, hardware stores, everything. So change your business model right? Well then you hit the regulations. Try getting a building permit. Try to figure out what is even possible when there is no regional plan. How can someone write a business plan? So you are right, its not just regulation, but the uncertainty in regulation certainly doesnt help.
Thanks for the info Mr. Steinbach, and good luck with the renewed venture.
Here’s hoping the Lake Tahoe Resort Hotel is very sucessful and continues to provide great service to guests which they demonstrated in the past.
Welcome back to Tahoe John! You have a great staff and a great hotel and I wish you lots of success. As part of a local service club, we thank your property for the continued support over the years and look forward to establishing new relationships.
A.B. says – Posted: March 4, 2013
Seems to be an ongoing pattern in South Lake Tahoe. Business failure after business failure. Taxes, regulations & bureacracy have buried many a business in South Lake.
Really? So you think the 20 mil visitors a year we use to get (we are down to about half that number) avoid Tahoe because of taxes, regulations & bureacracy???
As Embassy goes so goes SLT. Check out prices on Grand Residence resells. They are in the toilet.
Hoping against hope for a turnaround, but not holding the collective breath. The same failed regime is still running this failing town. Thanks TRPA, Sierra Clubies, and other assorted obstructionists.
Is the god Tahoe smiling or frowning?
Welcome back Mr. Steinbach. The South Shore has definitely missed your leadership.
Wishing you success. The beautiful architecture lifts our community. We’ve enjoyed dining and attending meetings there too. Many years ago, we enjoyed dancing at Turtles as well.