Luxury Hotel Executive Biggest Winner of U.S. Small-Business Relief
A Dallas hotel executive whose empire includes luxury resorts has emerged as the biggest winner from the coronavirus bailout for small businesses.
A combined total of $59 million from the small business lending package went to three lodging companies chaired by Monty Bennett, according to regulatory filings. The money went to Braemar Hotels & Resorts, which owns luxury properties including the Ritz-Carlton in St. Thomas in the U.S. Virgin Islands, Ashford Hospitality Trust Inc., which owns more than 100 hotels around the country, and the firm that manages both.
The PPP has come under fire after big restaurant chains like Potbelly Corp. and Ruth’s Chris Steak House got loans, while many mom-and-pop firms were left stranded when the initial $349 billion in funding for the program ran out of money last week. The House is expected to vote Thursday on a bill approving an additional $320 billion for the initiative.
The loans to Ashford underscore how large companies were able to take advantage of the small business program because of a loophole nestled in the bailout package that allowed companies with multiple locations to apply for loans that can convert to grants if they maintain employees and payrolls at certain levels.
Read more: https://www.bloomberg.com/news/articles/2020-04-23/luxury-hotel-executive-biggest-winner-of-small-business-relief