By Mark P. ZingalesPublished Mar 08, 2018 10:15AMThe $7,500 suite food service for pets in the City of Toronto’s newest luxury hotel has been axed after the condo owner’s company took a $50 million loss on it last year.
Hotel owners are in limbo as the city, condo owners and condo boards try to find ways to keep the city’s most popular pet-friendly resort open.
Toronto condo board chair and Toronto hotel board chair Joe Coles told reporters the city is “not going to be able to continue to operate the suite food services at the same time that we are going to lose money on them.”
Hotel executive Chris Clements says the city has the option of either continuing to operate suite food as it is, or shutting down the suite.
Hotels are required to pay for suite food but are not required to use it, said Clements, who chairs the Toronto Hotel Association.
Hotland has been operating suites for more than a decade, with a $1.4-million loss in 2018.
The condo board is seeking an emergency loan from the province, which has limited the number of suites it can buy.
The province is not buying up suites for condos, Clements said.
The condo board wants a loan that will guarantee it can keep the suites open.
The city has been negotiating with condo owners to keep suites open, but the condo board has not heard back from the city and has not reached a deal, Cables said.
Hotlands last season spent more than $9 million on suites, which include an indoor pool, an outdoor one, a steam room, a full bar and a chef’s kitchen.
Hotalas suite food business was supposed to end last year after a property owner’s lawsuit over a suite’s rent and food expenses went to court.
The city and condo board are trying to negotiate a new lease, and the city says it has received hundreds of emails and letters from condo owners.
Clements said the condo owners have not yet been contacted by the city or condo board and have not seen any offers from the condo boards.
He said condo owners who would prefer to keep suite food running would not be affected.
Hotals suite food has been open for more that 20 years, Cains said.
It has been a success, he said, and he expects it to continue.
But condo board member John Fennell said the suite business has been hurting the hotel business for years.
“The suites have been very important to the business,” he said.
“When the suites were first built in the mid-1990s, there was no suite food at the hotel.
That’s not the case now.”
Hotals is an offshoot of the city-owned Marriott Marquis Hotel, which opened in 1997 and was the first major hotel in Toronto.
The hotels suite food was not only used to feed guests but also provided a way to cater to a growing number of tourists.
Hotilas suites were the first hotel to have private dining rooms and a private spa.
The suites were built in 2005, and they have been a draw for tourists since.
The suites were designed by renowned architect Philip Johnson.