November 1, 2005 Update

Our plans for re-opening Hotel de la Monnaie are moving right along and we are hoping to be back in business by Monday, November 7, as an overnight or short-term rental property to accommodate insurance adjusters and the like.   As previously reported, our goal is to develop a revenue stream that can be shared by our owners.  Those of you who wish to use scheduled weeks are welcome to do so, but should be forewarned that services are limited within the hotel and in the city.  Future reservations are not being cancelled and deposits are not being returned at this time.  We are working to arrange access with RCI and II so that you may begin trading, but this cannot be finalized until HdlM is approved by RCI and II.  Banking is up to our individual owners and has to be arranged directly with RCI and II.

We had a very nice visit with RCI representatives a week ago, during which time they expressed great satisfaction with the property and the improvements that we’ve made.  However, until attractions and services are restored in the city, they are unable to classify our destination as a Red Zone property. 

We are working with Cox Communications as a new provider to establish telephone communications and if all goes well, we may accomplish this feat by sometime next week.  I made a passionate plea to a representative earlier this week and after 10 minutes, the woman commented on how moving my presentation was and then proceeded to connect me to another person, who connected me to another….

Nonetheless, I was very encouraged by their commitment to get us back into business.

All of our department heads have returned, and our maintenance staff has been expanded to include an electrician.  There are still challenges in the housekeeping department, although Betty has done a marvelous job of rounding up part-time workers to ready the rooms.  While many of our housekeepers have relocated and are having trouble returning because of family obligations or lack of housing, we are working on re-staffing.  Both Lisa Olgletree and Ella Mae Gould have returned.  Carolyn and Delilah are back at the front desk and we have hired Robert Lowe, a former concierge with the Fairmont, to replace Bill.  We have also lined up other potential front desk employees should we decide to expand our ranks.  The front desk is currently operating via cell phone (504-450-7959) but if your calls are not time-specific, I suggest you wait and call our landline after the 10^th when access should be easier.

We have completed installation of a large refrigerator in the break room and are waiting for 16 new smaller units to replace those that were damaged.   My stepson, Charles LeBourgeois, has installed wireless connections in the lobby for the HdlM computer and we are investigating costs for upgrading the network for owner/guest access.  We are also exploring costs for wireless capabilities throughout the hotel but may not be able to make this a priority for some time.

The board will be meeting on site November 19 and will have a full agenda as we continue to address Katrina-related issues and prepare for 2006.  This will be our first face-to-face meeting since the election, although we have had numerous teleconferences in the last few months.  Everyone is very committed to working on your behalf and to establishing a revenue sharing program for our owners who have been displaced or interrupted during this period.  I’ll send you an update on our progress following the November 19^th meeting. The annual request for maintenance fees should be out in late November with all the usual enclosures.  Le Centime should be published in early December.

Cheers!      Bill Prentiss

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October 17, 2005 Update

We’re beginning to see the light at Hotel de la Monnaie! Actually, our electricity came back on Monday, October 11, and my wife, Susan, and I moved into the hotel Sunday afternoon. It’s a little dismal being here alone in the building but until we’re ready to open for business, we’re trying to stay low-key and not attract too much attention. The city is still dealing with security issues. There is no cable or phone service, and we’re being told this may be the case for the next few months. However, since most people have cell phones, which we have the power to charge, this shouldn’t be a problem. Also, our potential guests (insurance adjusters) all come equipped with electronic gadgets in their cars that allow them to be functional on the road and not depend on hotel support. So, technology may work in our favor.

We’re currently interviewing for front desk personnel. Many places are short staffed and the hourly wage is inflated as a result. In fact, Burger King is offering $8 per hour with a $6000 bonus if workers stay 12 months. We have several good leads and are moving forward with this, particularly at the University of New Orleans.

DisasterMaster has finished its work and we’re now moving floor by floor with general cleaning, which should be completed by the end of next week. We are finding little discrepancies as we go, such as VCRs that have been destroyed by power surges. Two out of four ice makers were damaged as a result of the surges.

Betty, our housekeeper, continues to put rooms in order. Our chief engineer, Ron, is overseeing maintenance, and Wayne and Clarence have been invaluable as they tackle a multitude of projects. They were thrilled that the lobby has been emptied of all furniture and that they have now “sanitized and cleaned up the place”. Cherie Lopez rejoined us today and is gearing up with the comptrolling function for mailing out 2006 statements during November.

My wife, Susan, has turned into my “girl Friday” and has assisted with everything from handling phone calls to helping with inspections and staff searches. With a background as corporate sales manager at the Omni Royal Orleans and director of sales and catering at the Hotel Maison de Ville, she is well qualified to assist in these areas. This week, I will attack the process of filling out paperwork for claims with our principle insurer, Scottsdale. The dryvet, which covers the outside area of the building, sustained wind damage, and there are at least 15 Scotsman refrigerators and one upright one that had to be replaced. We’re going to do our best to recover our losses through insurance.

The board will be meeting by telephone conference later this week and will convene on site here in November. In the meantime, please know that we are all working for you to get up and running as efficiently and effectively as possible. Communications are difficult but in case of emergency, you may reach me at 504-400-6752.

Cheers! Bill Prentiss

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October 7, 2005 Update

In our continuing efforts to keep you informed in the aftermath of Hurricane Katrina, here’s a report on the status Hotel de la Monnaie.

We are making progress, but at a rate commensurate with the limited resources available within an area that’s experienced great loss. Actually, we’re doing better than most but there is a tremendous demand for fuel, supplies, work crews, and even for the attention of insurance adjusters!

It is important that everyone understand the dynamics of the area. Most parts of eastern Jefferson Parish (Metairie/Kenner) sustained little damage and retail establishments, grocery stores, etc., are functioning with some regularity. The Westbank (across the river from the French Quarter) is also being inhabited, but there is still no phone or cable service there. Parts of the city, including the area where HdlM is located, are still without electricity or phone service, and suburban areas below us (9th Ward, St. Bernard Parish) are totally inhabitable and without any utilities whatsoever. Activities within the French Quarter are spotty. The first Mass was celebrated at the Cathedral this weekend; Café du Monde and a few restaurants are attempting to open, but with limited menus. And, a few neighborhood bars—some of which never closed—are open for business. It is definitely a changing environment as everyone works toward our shared goal to bring New Orleans back.

At HdlM, we are conserving valuable fuel and operating with limited generator power, which basically means the chillers are shut down, there is no air conditioning, and only one elevator is being used. We have had a team from DisasterMasters come in to evaluate our condition. They will begin their work on Monday to clean, disinfect and replace refrigerators as needed. They will also clean and sanitize carpeting. Once this phase is complete, we will bring our housekeepers in to wash dishes, change beds and the like. Ron, Clarence and I are performing general maintenance tasks, and will work with a horticulturist to straighten trees and maintain the plants. We are still pursuing the possibility of room rentals, but must undergo inspections by local authorities in the short term and by RCI before we are back in the timeshare business.

Many of you have inquired about in-house exchanges or vacation plans prior to the end of the year, which is the reason we are providing such detail about the ever-changing conditions in New Orleans. When we have obtained approvals noted above, we will certainly welcome our owners but we will most likely be unable to promise specific units.

At the moment, both RCI and II have HdlM, as well as all other timeshares in New Orleans, blacked out until they conduct their own inspections of the properties. We are to contact them when we are ready for business and they will inspect us. They do not intend to accept any exchanges for the balance of this year from units between August 26th and the final week of their calendar years. They pointed out that even if the exchange companies approve us for trades, New Orleans will no longer be a red zone desirable destination city. We will essentially be in demand for the morbidly curious, Mardi Gras enthusiasts, and French Quarter Festival and Jazz Fest fans.

Any owners who have already banked units in the above time period for exchange travel will have to provide another usable unit to the exchange company in 2006. Neither RCI nor II intend to eat any weeks due to the disaster.

The Board will be meeting in mid-November to assess the situation and to take action regarding future operations and a revenue sharing plan for our owners. In the interim, HdlM is a “work in progress”. We will certainly work with you as best we can to accommodate your needs. Once phone service and power are restored, staff will be onsite to handle inquiries. If you have specific questions that need immediate attention, please contact me at 504-400-6752. Please note that this is a cell phone and there is often difficulty reaching numbers in the affected areas. Please do not call me unless it is an absolute emergency situation as I am swamped with details to execute at this time.

On a very positive note, plans were recently announced to resurrect Mardi Gras in some fashion and also, to present an abbreviated form of the French Quarter Festival in April. So, amidst the struggle, the spirit of New Orleans remains strong!

Bill Prentiss

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September 17, 2005 Update

[Note: The following is an excerpt from the latest newsletter which should arrive in your mailboxes this week.]

FROM GENERAL MANAGER BILL PRENTISS...

First and most important, the hotel and staff appear to be fine. I have contacted thirteen of our seventeen full-time staff. I have arranged for their last pay checks to be transferred into their banks. At the suggestion of Bill Peecher, an owner, we have set up a new bank account at Whitney Bank in Houston for the Hotel de la Monnaie Relief Fund. (Mr. Peecher thought of a much better heading of "S.O.S." for Save Our Staff. Unfortunately, I had already done the paperwork with Whitney Bank to set up account number 750276169.) Checks should be sent to Whitney National Bank, PO Box 847, Houston, TX 77001-0847. Bank wires can be sent directly to account number 750276169 at Whitney. Please designate payee as Hotel de la Monnaie Relief Fund.

A donation of at least $100 by each owner has been suggested. The fund will be managed and administered by the board, through Whitney Bank, according to need. These funds would be used to get our staff whose homes have been flooded or destroyed back into rental properties (down payments, purchase of new appliances and clothes, etc.). Most of our staff have suffered tremendously during this disaster. It would be wonderful if we could help restart the lives of those who want to return. Needless to say, those who are renters have no insurance to alleviate their losses.

Summary of the Event:

On Saturday, August 27, Mayor Ray Nagin came on the 10 o'clock news to state that category four or five Katrina would, according to the hurricane center in Florida, come almost directly through New Orleans. We could expect 10-23 foot surges of water over the levees in Lake Pontchartrain. New Orleans' worst fears of inundation by water would be realized.

I immediately called each of our staff members and told them we were evacuating the hotel and that they should get out of the city no later than Sunday morning. Although urged to leave, Susan Doucette said she had elderly parents and four other family members and wished to have them stay with her in the hotel as she continued to be available for the remaining guests.

At 6:30 a.m. Sunday I started waking our guests (we had sixteen units still occupied) and matching guests with vehicles with those who had none. By 10 a.m. the garage was empty and all but fourteen persons had left. I had staff member Bill Darby drive my vehicle, carrying a guest family of four, to Birmingham, Alabama. I arranged for four more guests to drive in my wife's car behind me (I was in my daughter-in-law's vehicle) to Jackson, Mississippi and dropped them at the airport before my wife and I drove to Vicksburg where we remained for the next eleven days. Eight guests (four by choice) were left with Susan in the hotel.

We had figured, correctly, that our generator was situated high enough in the garage to keep the hotel in power through the storm. When the levees broke after the storm, the 23 firefighters of Engine #9 (just down the street) that we had billeted in the hotel, told Susan that people were pulling guns on them in the streets and warned that when the criminal element saw the lights burning at HdlM they would shoot their way in and take over the hotel. The firefighters had carried all the lobby furniture to the second floor prior to the storm (part of our deal with Captain Maestri). On Tuesday, at 6 p.m., they gathered the eight remaining guests together with Susan's family and escorted them to Gretna. Susan had three vehicles and took another four guests to Orange, Texas. The other guests were sent out by the firefighters, who then returned to the Quarter. The hotel was left totally empty with no lobby furniture, no electricity, no vehicles - essentially nothing to tempt looters.

My stepson Charles visited the hotel on September 7th and said it was unoccupied and locked up (at least during the day). The firefighters of Engine #9 are keeping an eye on it for us. I spoke with Jackie Clarkson on Sunday night, the 11th. She is the councilperson for Algiers, the French Quarter, Marigny and Bywater areas. She said the military were in charge and were bringing the larger hotels back on stream as quickly as possible to house FEMA and other disaster agency workers indefinitely while the city is cleaned up. Essentially, since visitors won't be allowed in for some time, I asked Jackie to offer accommodations for up to 100 persons at the current government housing allowance rate. They would have to supply us with diesel fuel, food, water and security until our power was back on. I would hold back about five units to house our staff.

The income from this arrangement would be distributed at our usual split, 80% to the owner and 20% to the hotel, for those who were planning to either use their units or rent them this year. I understand that 2005 weeks already deposited and/or exchanged are being honored by both II and RCI, so any revenues from those traded/deposited units would go into the hotel's general operating account. Since it is impossible to predict the rebuilding effort in 2006 and beyond, we are not able to predict what II and RCI will do. We do know that they both will be sending in inspectors at some future date. No decisions can be made until that is done. Meanwhile, we want to assure all owners that the hotel will be maintained in the best possible condition and be ready to resume regular operations when that is possible.

New board member Sandra Dartus-Horwitz, with her extensive New Orleans contacts, was able to give me Jackie Clarkson's private cell phone number as well as the number for the FEMA logistics coordinator with the Army Corps of Engineers. As soon as I can get permission to go back in, I'll do so and organize the property to receive the FEMA personnel. We have plenty of linens and towels and are able to start up our laundry again as necessary. Many of the units had food left in them and it will be a nasty job to get the garbage and odors out.

Staff-wise, Bill Darby is going to Seattle and maintenance man Joseph Doucet has gone to California. Betty Roundtree, Renita Robinson, Clarence Celestine, Lisa Ogletree and Ella Mae Gould want to come back into the city. Susan Doucette, Ron Marinello and Delilah Turner will also be back, as will Michael Griffin and Cherie Lopez. I haven't been able to contact other staff as of this moment.

No one truly can project what will happen to New Orleans in the future. It seems certain that it may be some time before it is a tourist destination again. It also seems certain that the owners of the hotel will not be totally out of pocket financially on their maintenance fees if we can cut a deal with those tasked with fixing up the city. I will do all in my power, with the direction and advice of the board, to protect your investment in the hotel.

Bill

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September 9, 2005 Update

Hello all. What terrific work you've done!  I think it's just fabulous that you've mobilized and been so proactive. This is the kind of spirit HDLM needs and that certainly will bring New Orleans back to its feet!!! I'm sharing this email with Bill and with board members who have email access (Art, can you share with Pat?). We have a meeting via conference call planned for next Wednesday and I'm sure Bill will have more to report to you afterwards.
I'm off to Houston tomorrow to christen my first grandchild and can't wait to see my daughter and family members who've been scattered about after losing their homes. We at Hotel de la Monnaie have been so fortunate. Just as my family needs each other in this time of turmoil, it's so very important that the HDLM family supports each other. Thanks so much for your efforts.
Sandra Dartus-Horwitz

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September 5, 2005 Update

A Message from Board Member Sandra Dartus-Horwitz

Hello everyone. My husband and I were in Canada when the horrible hurricane hit but we stayed in close contact with our family and friends who were forced to evacuate the city. I also spoke with Bill Prentiss and have communicated with several of the HDLM board members. Bill and his staff got the guests out of the hotel and secured the building before leaving. Bill feels confident that the strong metal gates would have protected the property from looting. From all reports I rec'd from friends in the French Quarter and other in Marigny (approx 2 blocks behind HDLM), there was no water in the area. Of course, as mentioned below, there may have been some wind damage.

Bill feels that we are an excellent position to open for business once the city comes back, but that may be some time. Obviously, we won't be the destination of choice for tourists and facilities city-wide will be limited.
So many of my family and friends have lost their homes, which will be under water for 20-60 days, according to estimates, and our employees may be similarly affected. Even if HDLM could become a retreat for insurance adjusters, if the local folks can't move back (primarily our staff), the ability to operate will be hampered. But, we are still better off than the Hyatt, Sheraton, W, and so many of the properties we've seen on TV.

Right now, we can just continue praying for everyone and hope that gov't officials move more quickly than they have to help get us back on our feet.

Bill is doing a lot of behind the scenes work now to handle our banking and financial matters. We're trying to determine the best way of communicating with owners, but want to make sure we are accurate in what we report, so this may take some time. I know that Bill and my fellow board members appreciate your concerns and good wishes. As owners, we share a vested interest in the future of Hotel de la Monnaie and I know we all hope for the very best for our staff and the city we love.

Sandra Dartus-Horwitz

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