Florida's Biltmore Hotel is struggling

CORAL GABLES, Fla., July 19 (UPI) -- The historic Biltmore Hotel in Coral Gables, Fla., is $2.3 million behind on its rent, but not likely to be closed, city officials said.

"It would be a disaster of great proportions," said Coral Gables Mayor Don Slesnick, The Miami Herald reported Monday.

The 84-year old hotel has been owned by the city and managed by Seaway Corp. since 1992 after a previous owner went bankrupt. No rent has been paid since April 2009, the newspaper said.

Seaway has a plan to begin paying the city in 2011, at which point it will be $4 million behind on its rent. But the city is reluctant to close the grand hotel that is on the historic register and has sheltered kings, queens and presidents.

When it opened in 1926, owner George Merrick served pheasant to thousands, who were entertained by the Paul Whiteman orchestra.

The occupancy rate at the 280-room hotel is now lower than the county occupancy average. Revenues are down 25 percent with operating profits off 50 percent. But city commissioners are likely to approve some plan to keep the hotel open, the Herald said.

The hotel has to hang on and then "It will be in fine shape," said hotel industry consultant Scott Brush.