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You are here: Home  April 2010 From $12 million heartbreak to “Conversion of the Year”

From $12 million heartbreak to “Conversion of the Year”

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July 10, 2008 — that’s not mud flowing down the stairs. It’s wet concrete.
WINNIPEG—When Tom Caramanos built his hotel in South Winnipeg in 1990, he reinforced the three-storey structure because he had plans to one day add another two floors. When he decided to rebrand the hotel as a Four Points by Sheraton in 2006, they drew up plans for that dream to become reality. But when construction actually began in April, 2008, his dream quickly turned into a nightmare.

That spring, Winnipeg had massive rainfalls, and almost immediately after the construction started, rain water began to enter the building, causing $12 million in damage to the structure.

“The existing second and third floors, that were newly renovated, were completely destroyed—carpets, drywall and wallpaper, right down to the studs,” Caramanos told CLN. “It was like a horror story with wires hanging out. The exterior walls also sustained water damage and had to be completely rebuilt. There was water damage on the main floor, right down to the basement.

“Ceiling tiles were falling in our offices, and even the VLTs got wet. The potlights on the main floor looked like those fancy new showers. We had to put large garbage cans underneath. I can’t remember how many times I was up at 3:00, 4:00 or 5:00 in the morning trying to pump water off the roof,” Caramanos said.

The worst part was that the second and third floor guest rooms were to remain open during the renovation, but thanks to the damage, Caramanos had no rooms to sell for a year.

“Other departments, including the dining room, VLT lounge and beer store, were the things that sustained us during that time, plus our own personal money. We reopened on September 27, 2009, exactly the same date as our opening in 1990,” Caramanos noted.

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Sept. 27, 2009: the hotel re-opens as a Four Points by Sheraton. Tom Caramanos is second from the right.

And the resulting renovation was truly striking. The team at Astoria Enterprises, the owners of the Four Points by Sheraton Winnipeg South, added two floors to nearly double the hotel size. They built a new salt water mineral swimming pool, with hot tub, and an adjacent fitness centre overlooking the pool area.

The team created 4,000 sq. ft. of premium and stylish ballroom and meeting space. The meeting space has an overhead door, which allows vehicles to be driven in—one of only three sites in Winnipeg able to do this.

“It’s upscale, modern and state-of-the-art, and yet cosy,” Caramanos said.

The winter of 09/10 was difficult, because they didn’t have any of the revenue that normally comes in during the summer. But the hotel has many things going for it, including a prime location at the intersection of the Trans Canada Highway and the Pembina Highway, which links Winnipeg with the U.S. South Winnipeg is booming, with 30,000 new homes being built and new commercial businesses coming to the area.

“We’re in the heart of that,” Caramanos said.

Now they have solid bookings in 2010 and are working on 2011.

And the hotel was recently honoured with Starwood Hotels & Resorts’ First Annual North America Owner Awards. These awards recognize the most outstanding ownership partners and their contributions to the Starwood Hotels & Resorts portfolio.

The Four Points by Sheraton Winnipeg South was the recipient of the Conversion of the Year Award for select service. Caramanos received the award on behalf of the ownership team, in February at The Westin Diplomat in Florida.

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Renovated at last! The new lobby of the Four Points by Sheraton Winnipeg South

“Despite the overruns, delays and frustrations, our entire team remained more determined and focused than ever,” said Caramanos.

“We knew that our unwavering focus to complete this beautiful new hotel with much to offer in a growing market, would benefit all in the future. This honour from Starwood means a great deal, and has put us on the map big time!”

The applause for the property continues. TripAdvisor.com ranks the property 8th in popularity out of 53 properties in Winnipeg. This is outstanding positioning given the hotel’s location outside the downtown core and the fact that it only made its debut back in late September 2009.

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