Tag Archives: Flooding

by | January 25, 2012 · 1:38 am

Hospitality Industry Property Risks: Texas Hotel's Insurance Company Sues "Irresponsible Hotel Guests" For Causing Fire Sprinklers To Flood 39 Rooms On Four Floors

“…the defendants damaged the hotel by hanging clothes on a fire sprinkler head mounted to the wall…the hanger broke the glass tube component in the sprinkler, which caused it to activate and release enough water to flood 39 rooms on four floors, a workout room and four corridors…”

An insurance company is suing over claims irresponsible hotel guests in River Oaks activated a sprinkler system, causing 39 rooms to flood. Lexington Insurance, on behalf of RLJ Development, filed a lawsuit on Monday, Jan. 23 in the Harris County District Court against Al J. Mizrahie, doing business as Belladonna U.S.A., and others, citing negligence.

Carpets, padding, drywall, baseboards, bedding, furniture and fixtures were damaged during the incident, the plaintiff claims.

For more:  http://ultimatemontrose.com/stories/315610-guests-accused-of-flooding-39-rooms-at-river-oaks-hampton-inn

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by | August 11, 2011 · 6:23 am

Hospitality Industry Property Risks: Rhode Island Hotel That Suffered "Extensive Damage" From River Flooding In 2010 Reopens After Insurance "Largely Covers Reconstruction"

“…The hotel’s lobby, front desk, restaurant, meeting rooms, guest rooms and information technology equipment were badly damaged, and the facility, which had celebrated its grand opening in September 2008, was forced to close…”

“…The (reconstruction) cost was largely covered by insurance… The chain had hoped to reopen its Rhode Island location within a year but was delayed by in part by a business restructuring…”

NYLO Providence/Warwick has undergone extensive renovations on the first floor, which filled with four feet of water after the nearby Pawtuxet River breached its banks in March 2010. Michael Mueller, chief executive officer of the Texas-based NYLO Hotels chain, would not say Wednesday how much was spent on reconstruction. Susan Shaw, the new general manager, said the 163-room hotel will open with between 35 and 40 employees, down from 60 at the time of the flood. It will add employees and should reach full capacity by early next year, she said.

During a recent fire inspection test, in which the emergency lighting system was activated, Shaw said it happened to be raining — prompting an unpleasant flashback.

For more:  http://www.boston.com/news/local/rhode_island/articles/2011/08/10/warwick_hotel_damaged_in_2010_floods_to_reopen/

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by | June 4, 2010 · 10:42 am

Hotel Flood Insurance: Flood Damage To Hotels Is Very Complicated And Expensive As Much Of The Mechanical And Technological Infrastructure Can Be Below Street Level

“Flood damage requires an extraordinarily complicated repair process. We have had to manually test every aspect of our mechanical, electrical, information technology and power-generating systems in order to understand what works, what needs to be repaired, and what needs to be replaced. There is an entire city of infrastructure which operates under the Gaylord Opryland campus, the majority of which was fully under water, and thus the assessment process has been extensive.”

“…the company is exploring any potential legal recourse related to the inaccurate predictions company officials received from government officials, who originally thought that the Cumberland River would crest well below Gaylord’s levies.”

The cost to clean up and repair Opryland and other Gaylord Entertainment Co. properties in Nashville will be $215 million to $225 million, the company announced today. The company also plans to lay off more than 1,700 employees June 12.

The Opryland Resort & Convention Center will be closed until Nov. 15, the company estimates. 

Gaylord’s Nashville properties were damaged in historic flooding the first weekend in May. The repair cost is higher than initially anticipated by Reed, who said last month that, while he expected it to exceed a $50 million flood insurance policy, he guessed estimates as high as $200 million were overblown.

Read more: Gaylord: Damages exceed $200 million; 1,743 to lose jobs; Opryland closed until mid-November – Nashville Business Journal

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by | May 8, 2010 · 5:42 am

Hotel Flood Insurance: Gaylord Opryland Resort (Nashville, TN) Purchased Maximum $50 Million Flood Insurance And Is Unsure If Coverage Will Be Sufficient

The $1 billion-plus hotel on the banks of the Cumberland River had $50 million in flood insurance. Asked whether that amount would be enough to cover the damages, Reed said: “Maybe, but we just don’t know.”

That amount was the maximum level of flood insurance Gaylord could buy from any insurer “because we sit next to the Cumberland River,” Reed said. The company had tried to buy more, but couldn’t find any insurer willing to go above $50 million of coverage.

(From a Tennessean.com article)   It could be up to six months before the flooded Gaylord Opryland Resort and Convention Center reopens, and the full extent of damage is still being assessed, Gaylord CEO and Chairman Colin Reed told The Tennessean today.

“We have water in the tunnels; we have no understanding of the damage to the power plant. It could take three months, four months, five months or six months. The fact of the matter is that until we get the water out, we just don’t know,” Reed said.

He also said the hotel’s staff will remain on the payroll for at least the next six weeks and will play a role in helping the vast facility rebound. It’s unclear what happens with people’s pay after that initial period.

A flagship of Nashville’s tourism industry, the Opryland Resort & Convention Center was evacuated Sunday night as floodwaters spilled over the Cumberland River, filling parts of the hotel with 10 feet of water. Electronics systems and other high-tech equipment are at risk.

It will take a week to get floodwater pumped out, Reed said, and by then the company may have a better understanding of the full extent of damages. “Until we’re able to get to the technology, we just don’t know.”

http://www.tennessean.com/article/20100506/BUSINESS01/100506076/-1/nsitemapXML/Opryland-hotel-may-be-closed-for-six-months

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