Adam's Mark to become Hyatt

[bobliocatt]

Adam

[RiversideGator]

I guess tearing down the building and starting over with a new building is out of the question.

[crazy cuban]

a hyatt in J-ville is a good thing, seems that we are starting to lure the higher market hotels, still waiting for j-ville to get a boutique hotel in the realms of a W hotel, but trust me i am not holding my breath, neither do i think that tearing the building down was ever an option, i agree it is a pretty ugly building... but after 121 mil of our money>>> keep it right where it is!

[vicupstate]

I'm glad to see the hotel change ownership because Adam's Mark changed GM's more often than I change my socks. Hyatt should be able to bring some stability to the project and a better reputation as well.

BTW, the cost of construction was $121mm, the city incentives were around $21mm.

I doubt there will be significant exterior changes.

[Fruit Cove]

oh well this is still going to be an improvement.

[Viper]

Nice. Stability, a better name and overall a better deal.

[JaxNole]

I guess tearing down the building and starting over with a new building is out of the question. 

<{POST_SNAPBACK}>

I would contribute $5 if they could do something to make that building more appealing. Without it, though, we most likely wouldn't have had our Super Bowl.

[Urban_Legend]

I never hated the building. I think it's kinda nice, even though the balconies are only like 1 square foot. My biggest problem with its design is the pool area. It's on the roof, but it's completely closed in, surrounded by rooms and walls. Why didn't they capitalize on that great waterfront view up there??

[wolfdawg54]

I think that it will work out a lot better for jacksonville becuase is Hyatt is a much more reputable company than the Adam's Mark ever will be. It will be a definite improvement and will open up a new door to bring in Marriott somewhere else downtown.

[RiversideGator]

I just wish we had one old school hotel left over from downtown's glory days, like the George Washington Hotel. Oh well, I guess I will have to save up and build one.

[Urban_Legend]

^Not if I buy it first, lol. I'd love to be a developer in Jax!

[RiversideGator]

Urban: You are young. Start small as soon as possible but with a plan for a bigger future. You can do it.

[bobliocatt]

Adam's Mark plans still murky

By RYAN GEDDES

The Times-Union

The Adam's Mark hotel is something of a deal magnet, and a new prospect is feeling its pull.

Oxford Lodging Advisory & Investment Group LLC, a San Francisco company that bought New York's Metropolitan Hotel in 2003 and acquired a $100 million Hyatt Regency in Bethesda, Md., last year, is working on an Adam's Mark deal -- company representatives met with Mayor John Peyton on Monday and were expected to hold a news conference that day to announce plans for the property.

But details of the deal remain murky, and downtown's largest hotel has seen its share of suitors.

Rumors of its impending sale have bubbled for nearly a year -- Marriott International Inc. came close to buying the 966-room property last summer, but the agreement fell through after the city nixed an $8 million incentive package for the purchase.

And upscale hospitality company Starwood Hotels & Resorts Worldwide Inc. was poking at the property as recently as December, before the Adam's Mark's owner, St. Louis-based HBE Corp., pulled it back off the market, according to Starwood spokesman Mark Ricci.

Robert Kline, president of Oxford Lodging, said Tuesday that he could not talk about the Adam's Mark.

"Right now we have no comment. We're restricted by confidentiality," said Kline. "We certainly can talk with you at the end of the month."

HBE chairman, president and CEO Fred Kummer was unavailable for comment.

City officials and downtown business leaders have been murmuring about a potential Adam's Mark deal for days.

"It's an investment group that's buying it, and Hyatt would put their flag on it and manage it," said Toney Sleiman, owner of the Adam's Mark's next-door neighbor, The Jacksonville Landing. "Everyone in town is talking about it."

Sleiman said he was interested in purchasing the Adam's Mark last year and that he has "been talking to them all along" about the property. According to Sleiman, the hotel's current asking price is about $100 million.

City Council President Elaine Brown said a news conference about the proposed deal was scheduled, but that the event never materialized.

"I had heard that it is a Hyatt flag and that the deal is done," said Brown. "It was supposed to be announced on Monday."

A Hyatt Corp. spokeswoman did not return phone calls seeking comment.

Local publications The Financial News and Daily Record and The Jacksonville Business Journal posted articles on their Web sites Tuesday afternoon confirming that the deal between HBE, Oxford Lodging and Hyatt was done, citing unnamed sources.

Local developer Charles "Bucky" Clarkson, who once opposed the Adam's Mark's construction because it conflicted with his own plans for a downtown hotel near the Prime Osborn Convention Center, said Oxford is just one of the companies looking at the Adam's Mark.

"I've been aware that there have been ongoing discussions and negotiations, and Oxford is definitely one of the ones involved in the negotiations," said Clarkson. "If it comes to fruition, and it's Hyatt, Marriott, or Westin, it becomes very positive for downtown. It's a very important next step for downtown."

Susie Wiles, a spokeswoman for the mayor's office, said Oxford Lodging's meeting with Peyton was "very cordial," and "just a courtesy visit." She would not elaborate on the details of the meeting or confirm whether the group discussed possible city incentives with the mayor.

ryan.geddesjacksonville.com, (904) 359-4689

This story can be found on Jacksonville.com at http://www.jacksonville.com/tu-online/stor..._18231469.shtml.

[bobliocatt]

Adam's Mark sale confirmed to West Coast investor group

By CHRISTOPHER CALNAN

The Times-Union

The owner of the downtown Jacksonville Adam's Mark hotel, the city's largest, said Monday he plans to sell it next week to an unnamed West Coast investor group that would probably operate the hotel under the Hyatt name.

Fred Kummer, president of Adam's Mark's parent company, the St. Louis-based HBE Corp., confirmed the sale but declined to reveal details such as the purchase price or the identity of the buyer. A San Francisco-based hotel investment group that met with Mayor John Peyton earlier this month continued to decline comment Monday.

"The hotel will be transferred on the 31st of the month," Kummer said. "I finally deemed that it was in our best interest to sell the hotel. Jacksonville is a tough market because it's such a small city for a large hotel. Maybe it takes more marketing clout than we possess."

Hyatt is negotiating with the buyer for the management contract for the 966-room hotel, Kummer said. But three Hyatt officials didn't return telephone messages seeking comment Monday.

Hyatt operates several brands of hotels with varying levels of quality. Its Park Hyatts and Grand Hyatts are the company's two luxury brands, mostly operating ias smaller hotels. Because of the Adam's Mark's size, it would probably be branded as a Hyatt Regency, said Jeff Weinstein, editor in chief of Hotels magazine.

Hyatt Regencies are middle-market, four-star hotels that compete with Marriott, Hilton and Omni hotels, he said.

John Reyes, president of the Jacksonville & the Beaches Convention and Visitors Bureau, said Hyatt would be good for Jacksonville because it's adept at marketing its hotels along with the cities they're located.

"If it is Hyatt, that's going to mean the product would be favorable to Jacksonville," he said. "I know their track record going into major metropolitan areas has been very successful."

Toney Sleiman, commercial real estate developer and owner of The Jacksonville Landing, said last week he was told the asking price for the Adam's Mark was $100 million. Sleiman said he was interested in purchasing the hotel last year.

Earlier this month, Oxford Lodging Advisory & Investment Group LLC met with Peyton, and the company president said he wouldn't talk about the meeting until the end of the month, the same time period Kummer said the deal would be finalized.

The mayor's spokeswoman, Susie Wiles, also declined to provide any details about the meeting. On Monday, Cody Bradshaw, a director of Oxford Lodging, declined comment.

Oxford Lodging bought New York's Metropolitan Hotel in 2003 and acquired a $100 million Hyatt Regency in Bethesda, Md., last year.

HBE opened the Jacksonville Adam's Mark in 2001. The hotel was the NFL's headquarters for last month's Super Bowl XXXIX.

In July, after a proposed deal with Marriott International Inc. fell through, Kummer said he never intended to sell the property, but Marriott's offer was too good to dismiss.

Kummer has sold most of his 24 hotels so he can concentrate on his core business of building hospitals. A year ago, he told the St. Louis Post-Dispatch he planned to sell all his hotels except five: Denver, Dallas, Buffalo, St. Louis and Jacksonville.

Marriott and a private investment group offered to buy the Adam's Mark for $97.1 million if it received an $8 million loan from the city, according to city records. The group and Marriott planned to spend $18.5 million on renovations and related costs, but the city refused the request and the deal fell through.

The Jacksonville Adam's Mark was initially expected to cost $120 million to build. However, city records indicate its owners had invested $130.6 million in the property as of Dec. 31, 2003.

--------------------------------------------------

Global Hyatt Corp.

Global Hyatt is one of the world's top operators of full-service luxury hotels and resorts with more than 200 locations in about 40 countries. Its core hotel brand, Hyatt Regency, offers well-appointed rooms, fine dining, and exceptional service targeted primarily to business travelers and upscale vacationers. The company also operates properties under the names Grand Hyatt and Park Hyatt. Its resort destinations offer golfing, spas and other upmarket rest and relaxation activities. Although Global Hyatt was formed in 2004, the Hyatt chain traces its roots back to 1957. The company is owned by the Pritzker family of Chicago.

Source: Global Hyatt Corp.

--------------------------------------------------

christopher.calnanjacksonville.com, (904) 359-4404

This story can be found on Jacksonville.com at http://www.jacksonville.com/tu-online/stor..._18283456.shtml.

[RiversideGator]

I believe the Pritzker family is one of the richest in the world. They have extremely deep pockets. This is a good thing. Too bad they werent involved from the start (including the design phase).

[bobliocatt]

Yeah, that's too bad. Hopefully the new hotel getting ready to go up at San Marco Riverwalk will be much better (design wise).

[TheUrbanCore]

I just wish we had one old school hotel left over from downtown's glory days, like the George Washington Hotel.  Oh well, I guess I will have to save up and build one. 

<{POST_SNAPBACK}>

There are a couple. THe Ambassador Hotel on Julia Street is still on the table as is the Richmond Hotel in LaVilla. The Richmond, now Deloach Furniture, was the hot spot for African American jazz musicians and celebrities during LaVillas era as the Harlem of the South. Its been largely marred with stucco but we've seen that come off with good results. It used to have New Orleans styled balconies that the celebs would hang out on so the people could get a look. I imagine a nice sunset with live jazz playing while sipping a beverage on my LaVilla balcony...

Saving the Richmond would be a very interesting turn for that street and neighborhood.

[bobliocatt]

I agree. The 3 story Richmond is a hotel that most have forgotten about. Hopefully, we will see the redevelopment of that building when the courthouse situation is cleared. BTW, what's the hold up with the planned LaVilla Park located on the block across the street from the Richmond?

[vicupstate]

FYI, from the Daily Record

Correction to last week

[scongro]

As far as old school hotels go, the Carlington project by Vestcor is in the old Roosevelt Hotel. I thought it was great that the city stepped in and gave the money to save this building.

[Captain Obvious]

As far as old school hotels go, the Carlington project by Vestcor is in the old Roosevelt Hotel.  I thought it was great that the city stepped in and gave the money to save this building.

<{POST_SNAPBACK}>

And for that matter, the old Roosevelt hotel used to be the old Carling hotel. (hence the "carlington" name)

[RiversideGator]

I am very happy to see the Carling being put to good use as apartments, I just wish we had one still operating grand old hotel, like so many cities have. I just think it adds character to a city. Unfortunately, none survived the mass demolitions of the 60s and 70s and the flight from downtown. I do think the Lavilla hotel idea is a great idea and wouldnt take too much cash to pull off given that it is a smaller structure.

[vicupstate]

What is the latest on the Carlington anyway? They should be about finished by now. Same question on the Lerner building.

[vicupstate]

Is Adam's Mark too big?

Is a partial condo conversion Planned?

See this article on Adam's Mark

I think the Adam's Mark has performed poorly for numerous reasons.

1) They are trying to be a convention-only hotel. Every time I have done a search on hotels.com or a similiar site, they always have the highest price. It is not unusual from them to be $40 higher than the Omni or the Hilton. They should be competitive with those hotels for the business travel market. It's better to put heads in beds at $100 a night than to have 40% occupancy at $180 a night.

2) Adam's Mark has a bad name and is not considered equal in quality to Omni, Hilton, Marriott, etc., yet they charge more for the same product. As an organization, they don't have the pull to attract conventions like those other brands either.

3) You know an operation has problems at the top when the GM changes every 4-8 months. Even a highly qualified, talented individual is going to need time to turn an operation around. The fact that Adam's Mark has had similiar problems with hotels all over the country, confirms this also.

Personally, I doubt that Hyatt is going to try do a condo conversion initially. I think they will try to run the property strictly as a hotel first. It things haven't met expectations after 2-3 years, then that option might be looked at. I'm no expert though.

[Captain Obvious]

I typed out a really damn long post ... i even did math!! ... which then got erased. So now I'm bitter.

Here were the basics...

- Carlington garage was scheduled to be done in April. Should open any time now.

- Adams Mark condos don't make any sense. If you run some numbers with even very conservative assumptions, a hotel room over 30 years is much much more vauable than what a condo can garner in Jax. The only way condos would make any sense, is if the hotel truly believes that they will almost never ever book the rooms. I think Hyatt would be able to get a decent occupancy rate.