SINGAPORE (May 26): In a report by the Orlando Weekly on May 25, which referred to Urban Commons problems, including its failure to pay cleaning bills of US$420,000, it emerges that its Holiday Inn Resorts Orlando Suites - Waterpark, is valued at US$71 million, a marked difference from its valuation in the prospectus. According to the Orlando Weekly, Urban Commons also owes a staffing agency US$118,000. Holiday Inn Resorts has also furloughed 325 staff, the weekly says.
For local investors, the most eye-catching statement was the valuation of Holiday Inn Resorts Orland Suites. “With rumours running rampant on what the future holds for Urban Commons, the company issued a statement to Orlando Weekly to address many of the concerns regarding the future of the Orlando property and the company. First and foremost, they assure the Orlando Weekly that the Orlando site, now valued at US$71 million with an estimated annual RevPAR of US$22 million, is not for sale,” the Orlando Weekly says.
When approached for comment, an Urban Commons spokesman says: “A public assessor will not provide the true value of a property, the figure you have stated is not correct. We started negotiating the acquisition of the underperforming Holiday Inn Orlando Suites soon after the last recession. Over five years, Urban Commons invested more than US$30 million converting the property into what it is today. It took us three years to renovate, rebrand and relaunch the property, unlocking and adding significant value.”