Bank of America’s erection of a Ritz Hotel, outrageous?

While the tough economy environment made government to inject a great amount of money into the financial industry many observers and ordinary people became very critical of what purchases leading banks are making today. Corporate jets and executives pays are very hot topics of criticism for the advocates of taxpayers’ rights. Now another portion of fuel to the fire is Bank of America’s plans to erect a five-star hotel across the street from its headquarters.

BofA scheduled the opening of the new 147-room Ritz-Carlton in October in Charlotte. The bank-owned hotel will have a penthouse spa and meeting space to feed dinner to 480 guests, a hotel news release says.

As the critics are emitting howls over luxuries financial institutions dare to acquire Bank of America’s spokesman Scott Silvestri says that no bailout money was used to finance the hotel which was planned for erection four years ago.

Paul Hebert, an employee incentives and rewards consultant at i2i firm, says that the timing of the project is unfortunate. He notes that the bank would've been better off it had chosen a less-expensive brand, such as Crowne Plaza.

"It's again about the whole idea of excess and not spending money wisely," says Hebert of the i2i consulting firm. "Somebody in those mahogany-coated rooms should have said, 'Come on guys.'"

Meantime, Scott Smith of hotel consulting firm PKF says building a five-star hotel in a city with brisk business demand, few new hotels and a pent-up demand for luxury was "a good bet." When the economy recovers and the downturn in travel ends, Smith says, the Ritz-Carlton should end up making money.