Bank of America getting into the luxury hotel business

Image by James Willamor via Flickr

As Bank of America (BAC) prepares to start repaying TARP dollars, it’s also gearing up to open a new hotel across the street from its corporate headquarters. And it’s not a Holiday Inn.

Five months from now, the nation’s largest bank is scheduled to open a new, eco-friendly Ritz-Carlton in a sleek 18-story building. It will have bi-level, penthouse “wellness center” - in other words, a spa - and enough meeting space to accommodate 480 dinner guests, the hotel press release says.

Bank of America started planning the Ritz-Carlton about four years ago, said Scott Silvestri, a spokesman for Bank of America. Back then, the economy looked healthy enough to support luxury hotels in places that never had them, and companies weren’t afraid of being associated with five-star lodging.

But when the luxury hotel opens in October, it will greet guests in a vastly different environment. Silvestri says that Bank of America did not use TARP money to finance the hotel, still the bank does owe taxpayers $45 billion in TARP money. Had that not been the case perhaps the hotel - instead of the owner - would make the headlines.

“I would think there would be a lot of questions about that connection, unless they’re planning on giving TARP money back real quick,” said Paul Hebert, a consultant who’s written about how public perceptions have changed corporate travel and rewards decisions.

“It’s again about the whole idea of excess and not spending money wisely,” Hebert said. “Somebody in those mahogany coated rooms should have said, ‘Come on guys’.”

The hotel opening also comes as Bank of America scraps other business with Ritz-Carlton hotels. Just last month, for instance, the company dropped its 38-year-old, annual investment conference in San Francisco, according to the San Francisco Business Times. The event was traditionally held at the Ritz-Carlton.

In the hotel world and in Charlotte, however, the 147-room Ritz-Carlton is a notable one.

It will be Charlotte’s first luxury hotel.

It will also be Charlotte’s - and the Ritz-Carlton chain’s - greenest hotel.

The Ritz-Carlton was built to comply with strict environmental standards set by the Green Building Council, including water and energy efficiency, sustainability and indoor air quality goals. The hotel will be so green that the custom-designed employee uniforms consist of fabric made from regenerated plastic bottles.

The officially named Ritz-Carlton, Charlotte at Bank of America Center will begin accepting reservations this summer.

Bank of America getting into the luxury hotel business - Hotel Check-in: A road warrior’s guide to the lodging landscape - USATODAY.com