Sheldon S. Shafer

Louisville Courier Journal

A deal appears to have been struck for the sale of the iconic, nearly 1,300-room Galt House Hotel overlooking Louisville's downtown riverfront to the large Columbia Sussex hotel chain based in Crestview Hills, Ky., a firm that also has vast gaming interests.

The indication came in the publication of a liquor-license application Friday for the Galt House by the officers of the Northern Kentucky-based company. Under state law, you can't obtain a liquor license unless you have a legal arrangement to operate the business.

However, officials with the Al J. Schneider Co. said as recently as early February that the firm's two hotels -- the Galt House and the Crowne Plaza near Louisville International Airport -- were not for sale. The Schneider holdings also include equity in the new Embassy Suites hotel on Fourth Street, and the company is a partner in the Kentucky Kingdom amusement park in Louisville.

But the Schneider officials acknowledged that they might be interested in selling the firm's large office holdings, the 25-story Waterfront Plaza and One Riverfront Plaza, both of which front on Main Street.

In early February, Schneider released a statement that said, "We feel that the time is right to explore our options for these assets, including the potential disposition or refinancing of these buildings. We are evaluating all options.“

The Schneider Co. recently sold the Medical Arts office building on Eastern Parkway.

A legal ad for the liquor licenses was published in The Courier-Journal Friday. It was filed by four top officials with the Northern Kentucky-based, hotel management chain, "doing business as the Galt House," the ad said.

The four officials filed the application under the name CP Galt House LLC. They were: William Yung III, who is Columbia Sussex Corp. president and CEO; Christopher Ballad, the firm's chief financial officer; Derek Haught, Columbia Sussex's vice president of finance; and Theodor Mitchel, a corporate vice president.

Haught said "no comment" when asked about the Galt House in a brief telephone interview Tuesday morning. Corporate spokesman Joe Yung didn't return a phone call.

Rita Reedy, spokeswoman for the Schneider Co., when asked about the application for the liquor license from the Columbia Sussex officials, said only that the Schneider firm "still owns the Galt House."

She said she couldn't speak for Columbia Sussex and referred questions to that firm.

Hotel magnate Al J. Schneider died at age 86 in 2001. His heirs reportedly have expressed interest in cashing in on some of the holdings.

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Columbia Sussex is a privately held company that is owned by the Yung family. The company operates more than 40 hotels under numerous major brands, including Holiday Inn, Radisson, Marriott, Wyndham and Hilton.

Columbia Sussex began operation as Columbia Development in 1972 with the construction of a single Days Inn in Richwood, Ky. Rapid expansion followed. In 1983 a 400-room Holiday Inn was purchased and renovated in Louisville, and it later opened the Hilton Louisville East.

According to websites, Columbia Sussex entered the gaming industry in 1990, purchasing the High Sierra hotel in Stateline, Nev., from Del Webb for $19 million. It more recently has procured a stake in casinos in Las Vegas, New Orleans and other cities.

In January 2007, Columbia acquired Aztar Corp. for $2.1 billion. Those holdings included Casino Aztar in Evansville, Ind.

Reporter Sheldon S. Shafer can be reached at (502) 582-7089, or via email at sshafer@courier-journal.com.