Hospitality Industry Property Risks: Rhode Island Hotel That Suffered "Extensive Damage" From River Flooding In 2010 Reopens After Insurance "Largely Covers Reconstruction"

“…The hotel’s lobby, front desk, restaurant, meeting rooms, guest rooms and information technology equipment were badly damaged, and the facility, which had celebrated its grand opening in September 2008, was forced to close…”

“…The (reconstruction) cost was largely covered by insurance… The chain had hoped to reopen its Rhode Island location within a year but was delayed by in part by a business restructuring…”

NYLO Providence/Warwick has undergone extensive renovations on the first floor, which filled with four feet of water after the nearby Pawtuxet River breached its banks in March 2010. Michael Mueller, chief executive officer of the Texas-based NYLO Hotels chain, would not say Wednesday how much was spent on reconstruction. Susan Shaw, the new general manager, said the 163-room hotel will open with between 35 and 40 employees, down from 60 at the time of the flood. It will add employees and should reach full capacity by early next year, she said.