Hotelier Sees Opportunity in Hurricane Katrina's Devastation

Strategic Insights -

F. Patrick Quinn, a prominent developer in New Orleans, has transformed the disaster of Hurricane Katrina into a lucrative business opportunity. Quinn has made offers on 20 hotels in Louisiana and Mississippi, adding to the 15 he owns in and around the French Quarter. He has also purchased 5,000 bunk beds to create makeshift barracks for cleanup crews and other blue-collar workers. Quinn's wife jokingly tells him he's "complaining about the hours, but you absolutely love this," and she's right - Quinn is passionate about seeing New Orleans come back.

Key Takeaways:

  • F. Patrick Quinn, a prominent developer in New Orleans, is taking advantage of the business opportunities presented by Hurricane Katrina, making offers on 20 hotels in Louisiana and Mississippi and purchasing 5,000 bunk beds for makeshift barracks.
  • Quinn has already made a significant profit from the disaster, with his hotels nearly fully booked with workers and displaced residents, charging no more than $20 above the government rate of $133 a night a room.
  • Quinn has taken on a range of initiatives to help with the recovery efforts, including working with FEMA to provide lodging for workers and negotiating with other government agencies to provide housing for displaced residents.
  • Quinn's network of well-heeled friends has helped him secure resources and talent to help with his post-hurricane activities, including hiring a disbarred lawyer to help negotiate with government agencies.
  • The Quinn family has recognized the fine line between turning a disaster into a business opportunity and exploiting it, and have decided to charge no more than $20 above the government rate of $133 a night a room, despite having the opportunity to charge much more.

Statistics:

  • Quinn has made offers on 20 hotels in Louisiana and Mississippi, adding to the 15 he owns in and around the French Quarter.
  • Quinn has purchased 5,000 bunk beds to create makeshift barracks for cleanup crews and other blue-collar workers.
  • Quinn's hotels are nearly fully booked with workers and displaced residents, with some rooms being rented for as low as $20 above the government rate of $133 a night.
  • FEMA has signed a $100 million contract with the Shaw Group, a large construction and engineering company based in Louisiana, to help with the cleanup and rebuilding efforts.
  • The General Services Administration is responsible for central purchasing and has been identified as a holdup for Quinn's negotiations with FEMA.

Sources:

  • The New York Times
  • "Hotelier Sees Opportunity in Katrina's Devastation" by an anonymous author, The New York Times, [undated] ( Photographs by Lori Waselchuk)
  • Marc H. Morial, former mayor of New Orleans and president of the National Urban League
  • David G. Passey, FEMA's main spokesman on Hurricane Katrina
  • J. Stephen Perry, chief executive of the New Orleans Convention and Visitors Bureau