I have an event that I am attending in Waco at the end of September. Even with all of the hotels popping up in Waco, it is still hard to find decent hotels near downtown, and those that you do find are crazy expensive.

I have just often wondered why Baylor does not get into the hotel business similar to what A&M has done in College Station with building their new hotel and conference center. It seems that it would be a great opportunity to team with the City of Waco that could help draw more conventions/conferences to Waco with more space, and Baylor has the opportunity to maybe get into the hospitality business with new majors, etc...

Just curious of people's thoughts. Waco is in need of a bigger convention center/convention center hotel for sure. I was hoping that with the new riverfront development, they would get a bigger and even bigger name hotel brand in there to tie in with the convention center. Seems like a lot of opportunity with everything right there by the river.

CTbruin said:

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Lose tax exempt status

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How? I am sure A&M has worked their way around it. There is no way they gave up tax exempt status as an institution.

Could Baylor get some sort of partner to "run" it is that is the case?

Doubt the motel is "owned" by aggy

Baylor has been considering a hotel on the remaining land adjacent to the new Hurd Welcome Center as well as other complimentary development. I don't think anything is imminent but it's something being looked at.

And even though the hotel next to the Foster Pavilion attached to the garage was scrapped, there is still a plan for a hotel as part of the riverfront and several others to be constructed downtown.

Someone call LM Dyson…. I think he already has blueprints!

baylorguy09 said:

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CTbruin said:

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Lose tax exempt status

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How? I am sure A&M has worked their way around it. There is no way they gave up tax exempt status as an institution.

Could Baylor get some sort of partner to "run" it is that is the case?

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There are ways to do it. If you have a conference center and host university conferences, revenue from that is not taxable. If you have a hotel, restaurant, provide AV services, etc. those can be subject to unrelated business income tax. The university doesn't lose its tax-exempt status though unless somehow your conference center became the focus of the organization rather than running the university. Not likely. However, just running the conference center with a related hotel can cause the university to pay UBIT on the income not directly involved in its own conferences.

You have some options:
1. Run it that way and pay the UBIT
2. Own the center and lease it to an independent for-profit hotel operator. As long as it's not debt-financed, the rent income isn't taxable to a tax-exempt organization. Just the operations.
3. Operate the hotel in a taxable subsidiary and structure an agreement with the university in a way that reduces the UBIT.

There can be other versions of structures like that.

Fat Daddy said:

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Someone call LM Dyson…. I think he already has blueprints!

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lol … He has blueprints for golf courses , strip centers , office towers, hotels , ect … He just needs your money.

People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

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Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

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Honest question, How does the new Cambria, the hotel that Chip and Joanna are creating on Washington, and the new Marriott being built next to the Silos impact the occupancy rate?

baylorguy09 said:

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RightRevBear said:

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baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

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Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

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Honest question, How does the new Cambria, the hotel that Chip and Joanna are creating on Washington, and the new Marriott being built next to the Silos impact the occupancy rate?

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The impact is not that great because the hotels they build in Waco are typically not large hotels. We have opened probably 15 hotels in the last several years and the occupancy rate has stayed pretty consistent. I think the only way to see a big impact on the occupancy rate is to build a substantial hotel with a lot of rooms.

I really wish they would move forward with the Embassy Suites in downtown, but my only wish would be that they make it with a conference center similar to the one in San Marcos.

I also am still an advocate of having a larger Convention Center and hotel connected to it. With the location of Waco in the state, there is no reason why Waco cannot be hosting more state events and conventions. They just need to invest in providing those facilities. It is an expense, but I think a worthwhile one in the long run.

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Waco is in such a great location and easier to navigate and more affordable than Austin. It should be the permanent home for UIL championships and other state events. Bias aside, I would rather to go Waco for kids' sports than Austin.

TAPPs championships are nearly all in Waco for that reason.

baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

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Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

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That's really interesting. Thanks for sharing. I would not have guessed that ... I am shocked the Magnolia thing is still a thing. I'll admit I never got it, but I thought it would have flamed out five years ago.

Harrison Bergeron said:

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baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

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Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

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That's really interesting. Thanks for sharing. I would not have guessed that ... I am shocked the Magnolia thing is still a thing. I'll admit I never got it, but I thought it would have flamed out five years ago.

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Agreed, but I think the launch of their network has rekindled it a little bit. They just have a faithful following and they continue to open something new every so often to keep it "new." Smart business...

Harrison Bergeron said:

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baylorguy09 said:

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RightRevBear said:

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baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

---

Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

---

Honest question, How does the new Cambria, the hotel that Chip and Joanna are creating on Washington, and the new Marriott being built next to the Silos impact the occupancy rate?

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The impact is not that great because the hotels they build in Waco are typically not large hotels. We have opened probably 15 hotels in the last several years and the occupancy rate has stayed pretty consistent. I think the only way to see a big impact on the occupancy rate is to build a substantial hotel with a lot of rooms.

I really wish they would move forward with the Embassy Suites in downtown, but my only wish would be that they make it with a conference center similar to the one in San Marcos.

I also am still an advocate of having a larger Convention Center and hotel connected to it. With the location of Waco in the state, there is no reason why Waco cannot be hosting more state events and conventions. They just need to invest in providing those facilities. It is an expense, but I think a worthwhile one in the long run.

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Waco is in such a great location and easier to navigate and more affordable than Austin. It should be the permanent home for UIL championships and other state events. Bias aside, I would rather to go Waco for kids' sports than Austin.

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Completely agree. It is such a pain to get in and out of Austin (and I live here), and only going to be made worse with the I-35 construction starting soon.

I know the "it" thing to do is play at Jerry World, but none of those championships are sellouts.... McLane would be completely fine as a host and would be a heck of a lot cheaper.

As long as UIL is tied with the University of Texas, it will continue to reap the benefits. They should be smarter about it.

Harrison Bergeron said:

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baylorguy09 said:

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RightRevBear said:

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baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

---

Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

---

Honest question, How does the new Cambria, the hotel that Chip and Joanna are creating on Washington, and the new Marriott being built next to the Silos impact the occupancy rate?

---

The impact is not that great because the hotels they build in Waco are typically not large hotels. We have opened probably 15 hotels in the last several years and the occupancy rate has stayed pretty consistent. I think the only way to see a big impact on the occupancy rate is to build a substantial hotel with a lot of rooms.

I really wish they would move forward with the Embassy Suites in downtown, but my only wish would be that they make it with a conference center similar to the one in San Marcos.

I also am still an advocate of having a larger Convention Center and hotel connected to it. With the location of Waco in the state, there is no reason why Waco cannot be hosting more state events and conventions. They just need to invest in providing those facilities. It is an expense, but I think a worthwhile one in the long run.

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Waco is in such a great location and easier to navigate and more affordable than Austin. It should be the permanent home for UIL championships and other state events. Bias aside, I would rather to go Waco for kids' sports than Austin.

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If they every decide to place a roof on top of McLane, you might see that one day.

So the grant hotel isn't happening in the middle of no where across from FC anymore???? (Just kidding I knew it died several years ago.

As for the convention center wasn't the city talking about and even planning a new convention center and hotel to replace the current one downtown? I thought there was a thread on here about it a few months back?

Waco would be a great location for all sorts of conventions. Business, education, sports, etc.

baylorguy09 said:

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I have an event that I am attending in Waco at the end of September. Even with all of the hotels popping up in Waco, it is still hard to find decent hotels near downtown, and those that you do find are crazy expensive.

I have just often wondered why Baylor does not get into the hotel business similar to what A&M has done in College Station with building their new hotel and conference center. It seems that it would be a great opportunity to team with the City of Waco that could help draw more conventions/conferences to Waco with more space, and Baylor has the opportunity to maybe get into the hospitality business with new majors, etc...

Just curious of people's thoughts. Waco is in need of a bigger convention center/convention center hotel for sure. I was hoping that with the new riverfront development, they would get a bigger and even bigger name hotel brand in there to tie in with the convention center. Seems like a lot of opportunity with everything right there by the river.

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What makes you think that if Baylor had a hotel that it would not be expensive?

Paging Bankerbear

https://www.marriott.com/en-us/hotels/actac-ac-hotel-waco-downtown/overview/

baylorguy09 said:

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Harrison Bergeron said:

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baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

---

Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

---

That's really interesting. Thanks for sharing. I would not have guessed that ... I am shocked the Magnolia thing is still a thing. I'll admit I never got it, but I thought it would have flamed out five years ago.

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Agreed, but I think the launch of their network has rekindled it a little bit. They just have a faithful following and they continue to open something new every so often to keep it "new." Smart business...

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And not just the network. When they were hitting the peak of their success they started getting into every industry and having their eggs in a lot of baskets. Restaurants, bakeries, their own Target line of home accessories, perfumes and colognes, they each wrote books, journals, devotionals, etc., not to mention all of the unseen investments that I'm sure they made. So even when their HGTV show ended, they had taken up so much public space in Waco and throughout the country as a whole that it made their fame and products sustainable, even without a show.

But yes, launching their own network has helped continue to grow their brand, without a doubt.

I'm here...watching and reading!

baylorguy09 said:

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RightRevBear said:

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baylorguy09 said:

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Harrison Bergeron said:

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People tend to look at 2-3 periods of high demand and think "we need X." The reality is hotels have high fixed capital and fixed costs, so 10-12 weeks of high demand / year hardly justify the investment. How would Baylor pay for the 30-40 weeks of 25% occupancy?

---

Waco has the 2nd highest hotel occupancy in the state, only losing out to Austin. There is a demand year round. I guess thank Magnolia for a lot of it.

---

Honest question, How does the new Cambria, the hotel that Chip and Joanna are creating on Washington, and the new Marriott being built next to the Silos impact the occupancy rate?

---

The impact is not that great because the hotels they build in Waco are typically not large hotels. We have opened probably 15 hotels in the last several years and the occupancy rate has stayed pretty consistent. I think the only way to see a big impact on the occupancy rate is to build a substantial hotel with a lot of rooms.

I really wish they would move forward with the Embassy Suites in downtown, but my only wish would be that they make it with a conference center similar to the one in San Marcos.

I also am still an advocate of having a larger Convention Center and hotel connected to it. With the location of Waco in the state, there is no reason why Waco cannot be hosting more state events and conventions. They just need to invest in providing those facilities. It is an expense, but I think a worthwhile one in the long run.

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I would like to see the existing conference center expanded and an additional hotel included. I believe this would be a cost effective plan. The availability of space (land) around the existing Hilton and conference center might be an issue? There is existing space between 3rd and 4th streets, and the existing parking lot on Franklin next to the Hilton could be replaced by a parking garage.

This is why I wish they had utilized the riverfront to be more convention friendly. The apartments going up just seem like a waste of potential. I would have loved to see a riverfront convention center with retail spaces along the river from the new arena to Franklin, including riverfront hotels.
I hope the riverfront development gets better because what is going up now is not overly impressive. Hopefully they have a good plan to make it more unique to utilize the location.

bankerbear said:

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There is a new overlay plan coming to downtown and that very area. You will see a new hotel and an expanded convention center. Class A office occupied by BU, City, WISD and other major tenant.

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Has this been announced somewhere?

bankerbear said:

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There is a new overlay plan coming to downtown and that very area. You will see a new hotel and an expanded convention center. Class A office occupied by BU, City, WISD and other major tenant.

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Anymore info or announcements on the new overlay plan with hotel, convention center, office space, etc would be welcome. Saw the discussion on another thread about the Waco Performing Arts Center. I'm assuming that is part of this overlay plan.

City is seeking developer now through a RFQ process. Closing date in December. Developer selection in January 2024.

https://wacotrib.com/news/local/government-politics/gensler-downtown-redevelopment-rfq-waco-isd-master-developer-convention-center-minor-league-baseball/article_21776efa-6deb-11ee-b432-e30947ebc148.html

https://www.waco-texas.com/Departments/Purchasing/Bids/RFQ-2023-078-Master-Developer-for-Downtown-Waco-Mixed-Use-Projects

bankerbear said:

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There is a new overlay plan coming to downtown and that very area. You will see a new hotel and an expanded convention center. Class A office occupied by BU, City, WISD and other major tenant.

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I wonder if this would have any implications for Robinson Tower…

Also, you could house all of the staff in Robinson Tower and have each person bring 20 of their best friends and put them in the unfinished space in Hurd and still have room left over.

Is the OYO insufficient?

Yogi said:

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Is the OYO insufficient?

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