We will post a more detailed analysis at a later time, but here are some quick figures. Roy & Gentry Williams, Morris Strickland, and an unknown quantity of Chi-coms are asking the Pascagoula city council for more money. Below is a table showing documented funding sources for the construction of the Pascagoula Hilton Garden Inn. If Pascagoula approves the maximum amount of TIF bonds, over $27 million will have been raised to develop the hotel.
We provide a comparable hotel for sale in the Birmingham metro. While adjustments would need to be made, this listing provides a guideline. This doesn’t pass the smell test.
The hotel in Birmingham is not worth only half of the one in Pascagoula. Even if that were true, how does one raise $27 million for a hotel worth $22 million?
UPDATE: A reader sent in some Hilton internal documents from around the time of construction showing that this hotel should have cost $15-17 million all in.