Hotel & Motel Management - November 5, 2007 - (Page 42)

42 News H&MM November 5, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Conversion Continued from page 40 “If it’s managed well, the property is a good deal for us,” he said. Still, he ran into hurdles. Building a modern hotel from a derelict, abandoned building took 18 months longer than expected. Although Sage sought to add two ﬂoors, the preservation commission approved only one. “Historical properties consistently outperform the market,” Geist said. That said, the conversion trend has spilled over into cities of all sizes in many parts of the country, adding to room inventory. Some buildings date from 1852 (The Battle House, A Renaissance Hotel, in Mobile, Ala.) or had been built as recently as 1941 (Westin Minneapolis) but structures from the 1920s seem to have been particularly good candidates. Historic hotel renovations: A recent summary Name Year structure ﬁrst built Rooms Battle House, A Renaissance Hotel, 1852 Mobile, Ala. Renaissance Providence (R.I.) Hotel 1927 Omni Chicago Hotel Hilton Garden Inn Richmond (Va.) Hilton Baton Rouge Capitol Center The Hotel Minneapolis Skirvin Hilton Oklahoma City Westin Minneapolis Sheraton Hotel, Columbia, S.C. Westin Poinsett (Greenville, S.C.) 1893 1887 1927/1957 1905 1906 1941 1913 1925 238 272 300 250 291 224 225 212 135 200 Investment $220 million $102 million $100 million $80 million $70 million $50 million $46 million $45 million $15-$20 million $19 million Opening May 2007 June 2007 mid-2009 summer 2008 August 2006 August 2008 February 2007 May 2007 March 2008 2000 January 2008 Developers Retirement Systems of Alabama Sage Hospitality Resources; KimberlyClark Songy Partners; Snider-Cannatta HRI Properties; ECI Development Commercial Properties Development Corp. Hempel Properties; Morrissey Hospitality Cos. Skirvin Partners; Marcus Hotels & Resorts Ryan Cos. Ken Patel and Rick Patel of London 1 Packwood Management GW Development; CB Hotels The George Washington A Wyndham Historic Hotel, Winchester, Va. 1924 Not disclosed Sources: Travel Industry Assn. of America, Lodging Econometrics Banks, buildings that previously housed hotels, and nonlodging structures all have proven popular for conversions. None is larger than 300 rooms, and the transformation of the Chicago Athletic Association building into the Omni Chicago Hotel is at the top of list among the properties surveyed. But Bill Morrissey, president of Morrissey Hospitality Cos., an investor in the Doubletree-ﬂagged Hotel Minneapolis, said his 224-room hotel “represents the perfect mid-size property for the market, especially for the business traveler.” Just as Sage faced obstacles in Providence, the Morrissey/Hempel partnership had to gut the existing Midland Building that was originally a bank and then an ofﬁce building. “We couldn’t save anything inside,” Morrissey said. Commercial Properties Development Corp. was able to salvage a signiﬁcant amount of original details at its renovated Hilton Baton Rouge Capitol Center, according to Camm Morton, president and c.e.o. “I know the market well and when I walk into the site I sense great bones in architectural features that create a sense of place,” Morton said. This view was echoed by other developers who restore old buildings to 21st-century guest standards. CIRCLE NO. 107 “The great space of the former ﬁrst ﬂoor will be transformed into a lobby retaining the classic architecture,” Morton said. Morton’s ﬁrm cooperated with Louisiana’s historical commission in a challenge to blend two adjacent properties (the Heidelberg Hotel and Capitol House), built in 1927 and 1957, respectively. Vacant for years, the property once hosted Fidel Castro and John F. Kennedy. Skirvin Hilton in Oklahoma City, named for a family associated with the property, had been closed for almost 20 years, according to Bill Otto, president of Marcus Hotels & Resorts, a co-developer. “The customer base reﬂects guests who appreciate a sense of history,” he said. To that end, developers had to replace all windows to make them historically accurate. One lesson he learned was to expect costly surprises during renovation, requiring a boost in a reserve contingency fund. But federal and state tax credits of about $13 million helped soften the blow. By owning a building that was once a bank, will Hotel Minneapolis use a ﬁnancial theme in the design? “We will store our wine in what used to be the bank’s vault,” Morrissey said. hmm@questex.com http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.architecturalbrass.com http://www.architecturalbrass.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 5, 2007

Hotel & Motel Management - November 5, 2007 Contents M&A Pace Slowing After Early Boom LodgeWorks Jumps Into Upscale Game Accor Reorganizes Leadership, Structure Perspective At Your Risk Travel Trends Sales Clinic On Finance Family Business Matters Cornell Insights Franchise Law Training Trends Satisfaction Trends Management Trends Events Guest Column Trends & Stats GM Survey Historic Property Conversions Offer Appeal for All Extended-Stay Brands Survey Green is the Word at IH/M&R Show Transactions Restaurant POS Handhelds Keep Managers Alerted Rising Costs Confront Midwest Builders Business Travelers: Breakfast Still an Important Perk IH/M&RS Product Preview Vacation Ownership Projects to Grow in U.S., Abroad Awards Training Programs Jump to Front Lines Refrigeration: Before You Break It, Fix It Lighting Enhances Property People Supplier News Best Western Aims High with Atria Vantage Makes Global Plans Sierra Moves Forward with New Name, High Expectations Maintenance Doctor Social Marketing Makes Way into Hotel Industry People Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 5, 2007

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