Embassy Suites OKC NW

[brianinok]

Any more news (or rumors of news, frankly) on this? I'm beginning to think the current ownership (1) does not have the capital, (2) does not have the ability to get the capital because of the current poor financial performance of the hotel, or (3) is not really interested in upgrading the hotel is and just using it to milk it for all its worth / bleeding it dry, and it's going to continue to deteriorate over the months and years with no investment into the property, and when it no longer cash flows, they'll sell.

It's been nearly two years since they lost the Marriott flag. No legitimate company would let a prime property languish that long without investment. They are either in over their head (1 or 2 above), or they are not interested in improvement (3 above).

[okatty]

This property is on the Sherrif Sale list on Dec. 17th. Appraised at over $16 mill. Wells Fargo is creditor and "Columbia Properties Okla. City LLC" the owner.

[Urbanized]

Wowza

[Celebrator]

This property is on the Sherrif Sale list on Dec. 17th. Appraised at over $16 mill. Wells Fargo is creditor and "Columbia Properties Okla. City LLC" the owner.

What's the Sheriff sale? I don't understand what the sheriff has to do with this. Do we think this will sell on the 17th? What are the implications of a sale of this type? Sorry, i'm just ignorant in this realm.

[Jeepnokc]

What's the Sheriff sale? I don't understand what the sheriff has to do with this. Do we think this will sell on the 17th? What are the implications of a sale of this type? Sorry, i'm just ignorant in this realm.

Sheriff's sale generally means the property is in foreclosure and being auctioned off.

[Pete]

^

But usually with a property like this, there is a minimum amount set by the lender.

[Snowman]

What's the Sheriff sale? I don't understand what the sheriff has to do with this. Do we think this will sell on the 17th? What are the implications of a sale of this type? Sorry, i'm just ignorant in this realm.

It is a sale of foreclosed property, it is not certain it will sell there are some basic requirements (it has to go for at least 2/3rds the appraised price), if nothing else it implies months of problems in it's current operations.

[Celebrator]

Alright, thanks for the explanation. Is this good news? I feel like any movement at all at this point is good news. Am I wrong? Sorry, just want to foment some discussion on this news because it affects me as it is in my work neighborhood.

[Pete]

Something has to happen there.

I mentioned this upthread but I organized a class reunion there in 1988, 3 years after the opening.

Was in there for an event earlier this year and they have not done any updating to the carpet and most everything else I could remember. That is a span of 27 years! And it sure looked like it had been that long.

[okatty]

The judgment on the note is for $44 mill as of sept 30 with per diem interest at over 8600 a day since then. Appraisal for $16 mill and change. Wells Fargo is plaintiff but as Trustee for JP Morgan Chase Mortgage Securities Trust. Note was signed in 2006 so would love to know what they appraised it at back then. OUCH.

[brianinok]

I can see how it would have appraised at such a light level but wouldn't now. With a Marriott flag it would cash flow very high, but with no flag and the state it's in now, well not so much.

Having been inside recently, including the rooms, I would say the hotel still has the bones to make a nice hotel. It's a good structure. But it sure has been let go: dated, bad decor, decrepit furniture. It's 2 biggest problems are (1) no flag to give it instant credibility with travelers and (2) the size of the rooms (the double-double rooms are barely big enough for two double beds, room to slide-walk on one side, a small nightstand between, and a desk & chair by the window). The bathrooms are tiny too.

But with that second problem I'm not sure it could get a flag like Marriott, Hilton, or even Sheraton today. If they want a hotel in that area they'd probably build new (especially if a developer came along). Also, it really doesn't have any suites besides the presidential suite, but that's probably nothing some cash and remodeling can't fix, but it takes down your room count. What they market as suites are really "hospitality suites" connected to regular rooms. They're a double-size room with the bathroom taken out of one side and a bar put in, with a couple sofas and a table and chairs. Very Motel 6-ish looking.

I'm thinking it has a future as a Radisson or something. Maybe a Sheraton if the new owner is lucky.

[mugofbeer]

If I only had a few million lying around.....

[kevinpate]

That's what they said.

[traxx]

I'd say they need to call Anthony from Hotel Impossible, but since it's up for auction it sounds like it's already too late for that.

[SoonerDave]

What a shame to let such a nice property go to ruin like this. My mom held my wedding rehearsal dinner there two decades ago and it was *so* very nice, and now to hear how it has fallen down is very disheartening.

Here's hoping someone can pick it up and do something positive with it.

[Mike_M]

What a shame to let such a nice property go to ruin like this. My mom held my wedding rehearsal dinner there two decades ago and it was *so* very nice, and now to hear how it has fallen down is very disheartening.

Here's hoping someone can pick it up and do something positive with it.

I considered this hotel for my wedding reception in 2011 and it was just poor all around. They were throwing everything at us to get our business, even hosted my family for a private dinner at their restaurant to try the food. Every one of our entrees was just bad. Way oversalted fish, crunchy rice, and a bunch of other really amateur cooking mistakes. The sales manager even tasted our food and concurred with all of our concerns.

Two days later they called me and said they fired that chef and wanted to have us back for another chance, but we already picked another venue. I've attended 2 events there since, and it's always been very underwhelming. The place has tons of potential but really just needs better management and solid investment.

[Celebrator]

Anyone know what happened at the sale today with this property?

[okatty]

^ Assuming it sold, there will be a motion to confirm sale filed in the court record at some point in near future.

[pure]

stumbled on this today, Tower Hotel is listed in Ambridge Hospitality's Portfolio. They also do the Sheraton in MWC and Hyatt Regency in Tulsa.

Properties | Aimbridge Hospitality

Employer Profile | Tower Hotel Oklahoma City | Oklahoma City, OK | Aimbridge Hospitality

[Pete]

^

Interesting. Thanks for posting that.

The property hasn't sold and Aimbridge is purely a management company, but still it's an interesting turn of events.

[Celebrator]

^

Interesting. Thanks for posting that.

The property hasn't sold and Aimbridge is purely a management company, but still it's an interesting turn of events.

It has been managed by them for a little while now (at least 6 mo.). Still awaiting word on the fate of the property, hope we hear something soon.

[brianinok]

If you go to the County Assessor's website, it looks like there were some documents filed on 1/26. Were these not for the property changing hands after the sheriff sale to the bank?

[Pete]

If you go to the County Assessor's website, it looks like there were some documents filed on 1/26. Were these not for the property changing hands after the sheriff sale to the bank?

Effectively, JP Morgan -- the mortgage holder -- was the high bidder and transferred the asset to one of it's holding companies.

I'm sure they will eventually sell it to an investor / hotel chain.

[brianinok]

I noticed while across the street at Baptist Hospital for several days a couple weeks ago, that there was a crane at the old Marriott for a couple days. It appeared to be installing a new very large HVAC or boiler or hot water system (I can't tell the difference). I have no idea if the old one went out and they HAD to change it, or if they were actually upgrading. I would like to think they were upgrading in preparation for getting some kind of flag attached to the property, but I am pretty pessimistic after a few years without any flag at all.

[warreng88]

Patel to renovate Tower Hotel

By: Molly M. Fleming The Journal Record November 30, 2017

OKLAHOMA CITY – The Tower Hotel has a new owner after several years of having an uncertain future.

Champ Patel purchased the 1980s-era property Thursday. He plans to convert the 354-room property into a 215-room Embassy Suites within the next year. The hotel at 3233 Northwest Expressway was a Marriott until 2013.

The hotel has 13,000 square feet of meeting space. It will be renovated as well. The hotel will not close during the renovation.

HotelBrokerOne Vice President Ted Holmes and NAI Global brokered the deal. Holmes declined to release the sale price.

The Tower Hotel was built in 1985, according to county records. It was last sold in 2003, when Columbia Suffix Corp. paid $18 million for the property.

Holmes said the property attracted a lot of interested buyers. It sits on nearly 9 acres. Patel plans to build a 95-room limited-service hotel in some of the unused parking space. Holmes said he couldn’t announce the hotel’s flag yet.

On Dec. 6, Patel will break ground on the first location of a hotel chain’s new flag. The details have not been released yet. It will be built next to Barnes & Noble, near Quail Springs Mall.

Patel opened Hilton’s first-ever Tru by Hilton in May. It’s at 802 S. Meridian Ave.

Greater Oklahoma City Metro Hotel Association Director Jeff Penner said there couldn’t have been a better person in the world to buy the property. While Penner also works for Champion Hotels as the company’s regional manager, he said the rest of the association would agree with him.

“That’s what the hotel needs,” he said.

Greater Oklahoma City Convention and Visitors Bureau President Mike Carrier was delighted as he was talking about the sale to Patel.

“We’re very, very pleased to see that property is coming back as really nice and fully renovated,” he said.

He said he knew other buyers who were also interested in the space, and they would have also done a great job with the update. Over the last 10 years, he’s seen Patel’s work in the city.

“I know any time they undertake a project, they do it right,” he said. “They are outstanding operators.”

Penner said the Northwest Expressway corridor needs the 13,000 square feet of meeting space. The corridor is dotted with economy, extended-stay, and limited-service hotels, which have little or no meeting space.

Carrier said the meeting space is one of the property’s main attractions. The 13,000 square feet is used by state and regional associations. Other demand generators in the area are Integris, Deaconess, and other medical offices; Penn Square Mall, where salespeople are visiting clients; and other offices.

Patel’s investment in the Tower Hotel is a continuation of his interest in the Northwest Expressway, Holmes said. The corridor has seen a lot of hotel activity lately. A new Residence Inn opened in May, the La Quinta has been updated, and another property is under construction.

“This is a great day for Oklahoma City,” Carrier said.