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Boston Encore Hotel
the last financial statement i have seen from this property is the last quarter of 2019 where the results showed that the hotel lost $34.1 million for the quarter.. i haven't seen any further financial statements
the place had a total cost between land and building of about $2.7 billion. since gambling is a very cyclical business, very few banks will get involved with the financing of casino properties. i remember when Steve Wynn built the Mirage in Las Vegas in the early 1990's, he borrowed the money from the Teamsters Union and was paying over 10% for the loan. The Mirage bragged about paying over a million a day in interest and being able to overcome it. at the time everyone was skeptical about a casino property being able to function as a resort in the middle of the desert. a couple of years after The Mirage was operational and very successful Wynn was able to obtain more conventional financing at lower rates.
i was trying to find out where or if Wynn got the financing for the Boston hotel this time around. the place has basically been closed up for the past 10 months. the times that it was open had very few customers in the place. the restaurants and shops have all been closed except for a Dunkin Donuts. i have no idea how this place can make payments to lenders or pay their Real Estate taxes without any revenue coming in for this long a period of time, and more than likely another 6 months.
this property may or may not have been financed by the Teamsters Union, but i am sure there are plenty of other casino's in the same boat as Wynn that are financed by the Teamsters Union.. the whole purpose of the last few paragraphs is to cast doubts in the solvency of the pension structure of the Teamsters Union going forward. the only way that they could have been able to overcome these lending losses right now is if they had enough invested in the right stocks during this big stretch. i hope for the people that collect the pension money that they did.
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