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Thursday, October 20, 2011

Market saturation

Maybe on the way to this week's Saints game we'll have a chance to check out some of the "delighters" on display at the new Hyatt.

First, there's the addition of nearly 1,200 rooms to the city's inventory of hotel rooms. There is also the development of a downtown sports district, including Champions Square, which the Hyatt will anchor.

And, finally, the property brings with it new entries into the sparse selection of food options in that area of downtown.

Several restaurants, a convenience store and a coffee shop will also create new employment opportunities.

"We have a few delighters we're ready to unveil," said Michael Smith, the property's general manager. "We're ready. This is a totally new hotel."


Although I have to say I was less than delighted to learn that they had done away with what I was sure was a plan to re-brand the property as the "Yat Hotel" which would have had some kitsch value at least.

Yatt Hotel

Anyway, since the city now has 1,200 new beds on the market, it's strange to see one of our most successful hospitality magnates buck the proverbial trend and push for even more expansion.
Orleans Parish Sheriff Marlin Gusman is delaying a criminal-justice reform measure that would let New Orleans make a final decision on the total number of beds in his jail, the councilwoman most involved in pushing for that measure said this afternoon.


Of course, these niche business models are difficult to comprehend at first. It may be that the sweet money is in the "extended stay" market right now.

The final number is important because it represents a cap on how much money Gusman can make from housing city prisoners. That’s because the city pays the sheriff $22 a day for each prisoner. Fewer prisoners held for a shorter amount of time results in less money for Gusman’s office.

Critics, including the Inspector General’s Office, say that this payment system gives Gusman a perverse incentive to incarcerate more people and for longer, and Guidry has been among those who have called for an overhaul in the system. Pressed on the issue by a reform advocate about why this system hasn’t been changed this year as she’d hoped, Guidry responded simply: “Unfortunately that didn’t happen.”

The City Council enacted reforms in December aimed at reducing the number of people jailed for minor offenses, giving police the option of issuing them a ticket instead.

Gusman has started keeping inmates longer, according to a report given to the committee Wednesday by Austin. Guidry said she needed to understand why before the group decides on a final jail size.

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