Waco's Evolving Hotel Growth...Waco Tribune Article

3,266 Views | 24 Replies | Last: 3 mo ago by Hubbs
Wicked_Wombat
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https://wacotrib.com/business/local/range-of-downtown-waco-hotel-projects-underway/article_8205cf50-1a9a-11ed-a27d-83e5d5e6ce17.html?utm_campaign=snd-autopilot&utm_medium=social&utm_source=facebook_Waco_Tribune-Herald&fbclid=IwAR2reLRTpkNXB_tJdHw8a4Df05AM9mHCYZVbYnSdyKnwSixNHg10FdbYkpI
Boernebear
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I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Twitter: @BoerneBear | #SicEm
baylorguy09
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Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.
Bearly Interested
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I believe it will be a Westin.
Old300Bear
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baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


I read somewhere that this company will develop the hotel. They have a division that does college themed boutique hotels, but if I remember right Waco's will not be college themed

https://ajcpt.com/
Fred Barber
FrankFallonCalling
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Old300Bear said:

baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


I read somewhere that this company will develop the hotel. They have a division that does college themed boutique hotels, but if I remember right Waco's will not be college themed

https://ajcpt.com/

If they don't do something in the Graduate series, it will be a missed opportunity. Those are really well done. Peyton recently pitched in on the one in Knoxville and its awesome.
Old300Bear
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I thought the same thing
Fred Barber
cowboycwr
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They didn't provide an update on the Grant Hotel....
Blackjack Bear
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Update coming soon after first annual ice fishing tournament on Brazos river is scheduled.
Boernebear
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FrankFallonCalling said:

Old300Bear said:

baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


I read somewhere that this company will develop the hotel. They have a division that does college themed boutique hotels, but if I remember right Waco's will not be college themed

https://ajcpt.com/

If they don't do something in the Graduate series, it will be a missed opportunity. Those are really well done. Peyton recently pitched in on the one in Knoxville and its awesome.
The new Magnolia Hotel (Hotel 1928) is being done with this group as well. They are spending well over $1M per key for that hotel, which tells you a lot about how they're thinking about Waco. I hope that one or the one by the basketball pavilion is part of the Graduate series.
Twitter: @BoerneBear | #SicEm
UrsinusInfction
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Any update on those hotels near Sicem365 on MLK? Seems like progress stalled a few months ago.
FranchiseBear
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That is interesting. Coooer M is a partner as well. They have a great reputation but I'll say- don't stay at the one in Athens, GA. It's a rehab of existing motel. Terrible.

I would love to see rhe Valencia Group develop in Waco. The properties I've stayed at in CS and Lubbock are really cool build out and awesome common areas.
Yogi
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baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


An Astro Inn?
"Smarter than the Average Bear."
cowboycwr
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Yogi said:

baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


An Astro Inn?
No it will be the new location of the Mardi Gras hotel/motel....
CorsicanaBear
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Yes, we lost our MO-HO-tel. I surely hope that sign was saved somewhere.
Boernebear
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FranchiseBear said:

That is interesting. Coooer M is a partner as well. They have a great reputation but I'll say- don't stay at the one in Athens, GA. It's a rehab of existing motel. Terrible.

I would love to see rhe Valencia Group develop in Waco. The properties I've stayed at in CS and Lubbock are really cool build out and awesome common areas.


Agree with this - the Valencia guys know how to create a great product. There were early rumors of a Baylor themed boutique hotel adjacent to the new welcome center awhile back as part of the development of that entire site.

I gave the Valencia name to a few people on staff at Baylor when I first heard those rumors. Would be something special for sure. Haven't heard anything about that in over a year, though.
Twitter: @BoerneBear | #SicEm
Old300Bear
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Maybe the Baylor themed hotel goes by the Welcome Center and a different themed hotel goes next to the arena with the same people managing both.
Fred Barber
FranchiseBear
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I don't see that being the case with Graduate or Valencia Group. Hard to explain if you haven't seen them but these are not cookie cutter projects. Waco doesn't need another (insert generic hotel name). Sounds like Pivovar and the Magnolia property are good next steps.

Say what you will about tamu but CS has blown Waco out of the water in terms of 'A' commercial development. The mixed use project with Cavalry Court AND the George Hotel (both Valencia) is one example.
Brian Ethridge
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Staff
UrsinusInfction said:

Any update on those hotels near Sicem365 on MLK? Seems like progress stalled a few months ago.
Should be ready around October or November, I believe.
T-REX
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Boernebear said:

FrankFallonCalling said:

Old300Bear said:

baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


I read somewhere that this company will develop the hotel. They have a division that does college themed boutique hotels, but if I remember right Waco's will not be college themed

https://ajcpt.com/

If they don't do something in the Graduate series, it will be a missed opportunity. Those are really well done. Peyton recently pitched in on the one in Knoxville and its awesome.
The new Magnolia Hotel (Hotel 1928) is being done with this group as well. They are spending well over $1M per key for that hotel, which tells you a lot about how they're thinking about Waco. I hope that one or the one by the basketball pavilion is part of the Graduate series.
How does that cost per room work out profitability wise? How long does a hotel typically take to become profitable?
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Boernebear
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T-REX said:

Boernebear said:

FrankFallonCalling said:

Old300Bear said:

baylorguy09 said:

Boernebear said:

I think it's a bit odd they didn't say anything about the new hotel planned adjacent to the new basketball pavilion that is going through the RFP process right now and is in active negotiations.
Any word on what hotel it will be? I am hoping it will be a well-known hotel chain and not some hole-in-the-wall place. The Hilton has done good for Waco... time to bring in a big name and not an off-brand, big name.


I read somewhere that this company will develop the hotel. They have a division that does college themed boutique hotels, but if I remember right Waco's will not be college themed

https://ajcpt.com/

If they don't do something in the Graduate series, it will be a missed opportunity. Those are really well done. Peyton recently pitched in on the one in Knoxville and its awesome.
The new Magnolia Hotel (Hotel 1928) is being done with this group as well. They are spending well over $1M per key for that hotel, which tells you a lot about how they're thinking about Waco. I hope that one or the one by the basketball pavilion is part of the Graduate series.
How does that cost per room work out profitability wise? How long does a hotel typically take to become profitable?


It's all driven by a projected yield on cost. I'd argue that on a high end boutique project in Waco, a reasonable investor would want a low double digit going in unlevered yield on cost. Meaning someone would want nearly $5 million in annual net operating income from this property when you include the cost to purchase and then renovate the building. That's not only room revenue - that includes food and beverage (there's a three meal a day restaurant, rooftop bar, events and presumably room service) and meeting space.

That said, I can't imagine they will charge less than $300-500/night for mid-week, non-event nights for standard rooms and maybe closer to $700-$1k/night for weekends and especially major Magnolia or Baylor events. They also have a few suites that would be even more.

My assumption is that food and beverage and meeting business will be a big chunk of the income here - at least 30-40% wouldn't surprise me. This place will be packed when it opens up.
Twitter: @BoerneBear | #SicEm
BCL79
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FranchiseBear said:

I don't see that being the case with Graduate or Valencia Group. Hard to explain if you haven't seen them but these are not cookie cutter projects. Waco doesn't need another (insert generic hotel name). Sounds like Pivovar and the Magnolia property are good next steps.

Say what you will about tamu but CS has blown Waco out of the water in terms of 'A' commercial development. The mixed use project with Cavalry Court AND the George Hotel (both Valencia) is one example.
Do you live in CSB? I'm in CRE, and while Century Square has good points ... it has been hell getting it filled up. The paid parking is a royal pain for most folks. The premium retail is barely making it. THe King Ranch store has moved into a space about half the original.

I doubt an upscale area like Century Square can make it in Waco, even if it is on the River. It needs to be a little scaled back, IMO. The new texmex restaurant, Juanita's, is insane. Margaritas are $16 for a large. Seems regular size is $10 (not sure). My bride and I dropped over $60 ..... for fraking TexMex.

Century Square may make it, but the verdict is still out.
FranchiseBear
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Interesting info. I do not live in BCS (live in Houston). I stayed at Cavalry Court for just one saturday night this Summer and was blown away by both hotels and the energy that night with the entire development. There were people everywhere.

I can certainly envision the rent rates to be pretty extreme and us Texans do not like paid parking. I do think Waco can exceed what we have now in terms of hotel and retail development
4yrletterbear
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My Mother waited too late to make reservations for Homecoming in 1963 when my brother was aa sophomore at BU. We stayed at the Astro Motel. My dad made reservations 1 year in advance after that experience.
Hubbs
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FranchiseBear said:

That is interesting. Coooer M is a partner as well. They have a great reputation but I'll say- don't stay at the one in Athens, GA. It's a rehab of existing motel. Terrible.

I would love to see rhe Valencia Group develop in Waco. The properties I've stayed at in CS and Lubbock are really cool build out and awesome common areas.
Yeah, the Cotton Court is nice. https://www.cottoncourthotel.com/
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