George R. Brown Convention Center Redevelopment, Office Building & W Hotel

[Houston19514]

22 hours ago, gene said:

haha!!!!!🙈

its weird hours but i think because its the cafe located within the Greater Houston Partnership office/building so they have office hours...so basically breakfast and lunch. You would think on weekends at least they would stay open later...

 

 

 

I don't think it's in the Partnership Building.  Pretty sure it's in the GRB; a little south of the center of the building. It's the cafe located within the Welcome Center.

[gene]

6 minutes ago, Houston19514 said:

 

I don't think it's in the Partnership Building.  Pretty sure it's in the GRB; a little south of the center of the building. It's the cafe located within the Welcome Center.

Correct! I knew it was in part of some type of "office" or business! Thanks for the clarification!!!

Interestingly enough the below article makes it sound like it could have extended hours at night during special events? not sure if that is the case, but that is how i read it.

 

http://ldforrest.com/avenida-eats

OVERVIEW

Avenida Eats is a grab-and-go casual dining concept that is part of the Houston Welcome Center which opened in Summer 2019. The three-part Houston Welcome Center which includes Avenida Eats, Launch and the Houston Information Center is located inside the George R. Brown Convention Center. Avenida Eats’ name is derived from Avenida Houston, the entertainment district that envelopes the convention center and nearby park, restaurants, hotels and surrounding area.

The audience for Avenida Eats is meeting/convention attendees and nearby office employees looking for a quick, affordable, bite to eat. Avenida Eats also is open to support weekend and evening special events on Avenida Houston by also offering a selection of beer and wine options. Food offerings include barbecue, tacos, sandwiches, salads and desserts.

Edited August 20, 2019 by gene

[Houston19514]

RE:  W Hotel.

 

From the June 20, 2019 Houston First Board of Directors Meeting minutes:  ". . . update on the W Hotel Development. . . .  the project team has made a lot of progress thus far, but they are still negotiating several key terms, including the room block agreement and insurance requirements."  "Al Kashani also addressed the Board regarding the W Hotel Development. Mr. Kashani stated he is excited about the W Hotel and very close to finalizing a deal with HFC, but he has some concerns with several items not originally included in the term sheet. He also discussed strenuous insurance requirements under the agreement. Mr. Kashani stated Houston is his home and he is committed to investing in the city, but he wants to ensure that he is treated fairly. Mr. Kashani requests the Board's support in finalizing the agreement."

[Luminare]

42 minutes ago, Houston19514 said:

RE:  W Hotel.

 

From the June 20, 2019 Houston First Board of Directors Meeting minutes:  ". . . update on the W Hotel Development. . . .  the project team has made a lot of progress thus far, but they are still negotiating several key terms, including the room block agreement and insurance requirements."  "Al Kashani also addressed the Board regarding the W Hotel Development. Mr. Kashani stated he is excited about the W Hotel and very close to finalizing a deal with HFC, but he has some concerns with several items not originally included in the term sheet. He also discussed strenuous insurance requirements under the agreement. Mr. Kashani stated Houston is his home and he is committed to investing in the city, but he wants to ensure that he is treated fairly. Mr. Kashani requests the Board's support in finalizing the agreement."

 

Houston First is actually a pretty good organization, but with it being a quasi-public-private organization I'm sure the paperwork, bureaucracy, and stakeholders you have to maneuver around must be a nightmare. Glad this is still moving forward.

[Houston19514]

So, it looks like this hotel is still alive. From the agenda for tomorrow's Houston First Corporation Board of Directors meeting:

 

Executive Session:  Executive (closed) session pursuant to Texas Government Code Section 551.072 for the purpose of consultation with Houston First Counsel regarding certain real estate matters relating to the construction of a hotel on top of Partnership Tower.

 

Board Business:  A. Consideration and possible action with regard to a Development Agreement, Air Rights Lease and other ancillary documents with Texas Hospitality Partners, L.P. for the construction of a hotel on top of Partnership Tower.

[mattyt36]

Vote postponed for Board to have more time to review information.

 

https://www.houstonchronicle.com/business/article/Houston-First-postpones-vote-on-proposed-W-Hotel-14919980.php?utm_source=newsletter&utm_medium=email&utm_campaign=HC_MorningReport&utm_term=news&utm_content=briefing

[wilcal]

https://www.houstonchronicle.com/news/houston-texas/houston/article/City-to-offer-big-subsidies-for-luxury-hotel-near-14978891.php

 

Quote

Houston’s convention agency is poised to grant developers subsidies worth more than a third of the cost of a proposed luxury hotel atop its downtown headquarters, contrary to the original vision for the hotel and in contrast with industry norms, experts said.

The Houston First Corp. board on Thursday will consider whether to offer the developers of a proposed W Hotel its portion of an estimated $43 million in subsidies over 16 years. If that agency approves, the deal would go to Houston City Council, which would decide whether to grant the project property, sales and beverage tax breaks.

 

[HOUCAJUN]

22 minutes ago, wilcal said:

https://www.houstonchronicle.com/news/houston-texas/houston/article/City-to-offer-big-subsidies-for-luxury-hotel-near-14978891.php

 

 

Then how long is it going to take to get to city council? Too much talking and not enough digging.

Edited January 16, 2020 by HOUCAJUN

[wilcal]

7 minutes ago, HOUCAJUN said:

Then how long is it going to take to get to city council? Too much talking and not enough digging.

 

Well, digging in this case would be a rather backwards proposition. 

[monarch]

https://www.bizjournals.com/houston/news/2020/01/16/rather-than-open-several-new-hotels-houston.html?ana=TRUEANTHEMTWT_HO&taid=5e213159ceb08f00012a0789&utm_campaign=trueAnthem%3A+Trending+Content&utm_medium=trueAnthem&utm_source=twitter

 

Rather than open several new hotels, Houston welcomes guests to updated buildings 

By Jeff Jeffrey  – Reporter, Houston Business Journal

Jan 16, 2020, 5:10pm CST

After years of white-knuckle volatility, Houston’s hotel market is preparing for a strong, if relatively calm, year in 2020. That’s good news for the city’s hotel managers.

With construction appearing to slow — and convention activity outpacing many of the city’s competitors — room rates might be on track to increase for the first time in nearly 18 months, according to analysts.

To stay competitive, many of Houston’s most high-profile hotels have embarked on major remodeling efforts to bring their facilities in line with changing customer demands.

“The Houston market has gone through some crazy times in the past five years,” said Randy McCaslin, founder and CEO of Houston-based McCaslin Hotel Consulting. “But 2020 appears to be the year when demand will outstrip the supply of rooms on the market.”

Data collected by STR, a Hendersonville, Tennessee-based global hospitality research firm, found that the city’s 93,677 hotel rooms maintained a 63.9 percent occupancy rate through November 2019, down nearly 10 percent from five years ago.

The decline in occupancy rates has also put downward pressure on average room rates. STR reported that room rates in November were down 3.2 percent from 2018, with the average room costing $102.83 per night. That’s nearly $8 per night less than the average daily room rate in 2015.

Over supplied

Houston hotels underwent a construction boom in the years leading up to the 2017 Super Bowl. STR reported that hotel developers in greater Houston added nearly 8,500 new rooms to the market between 2014 and 2016.

Perhaps the most notable hotel to open during that time was the Marriott Marquis Houston Downtown, a $370 million, 1,000-room luxury hotel that opened in December 2016.

The surge in construction continued through 2017, with the opening of luxury properties like Hotel Alessandra at the GreenStreet mixed-use development Le Méridien Houston Downtown in the renovated Melrose Building at 1121 Walker St.

The number of available hotel rooms came in handy in late 2017 when Hurricane Harvey struck Houston, forcing many of the city’s residents to evacuate their homes. McCaslin said Harvey was responsible for an additional 2.4 million room nights being booked at Houston’s hotels.

“While no one wishes for those kinds of events, when people are out of their homes, hotel occupancy goes up,” McCaslin said.

But after 2017, occupancy rates started to slide, setting off a decline in room prices. As of November, the average cost of a hotel room in Houston was $102.83, according to STR, which is about $4 per night less than 2018 and $24 per night less than the high of $124.74 in May 2014.

Some of the more recent additions to the Houston market have come in the form of new hotels opening in some of the city’s oldest buildings, driven in part by state and federal tax breaks.

In late 2019, Houston saw the opening of Cambria Hotel Houston Downtown Convention Center at 1314 Texas Ave., the historic building formerly known as the Great Southwest Building and the Petroleum Building; and AC Hotel by Marriott Houston Downtown, the 105-year-old building at 723 Main St., which most recently served as The Houston Bar Center.

And more hotels are on the way.

Houston-based Pearl Hospitality is working to convert the original Medical Towers at 1709 Dryden into the Westin Houston Medical Center.

Another hotel will form a key facet of DC Partners’ The Allen project, which is under construction along Allen Parkway. The development is anchored by a 34-story tower, the first 14 floors of which will operate as a hotel overseen by Hyatt Corp.’s boutique subsidiary, Thompson Hotels. The remaining floors will be reserved for condos.

“Investors and developers love Houston, so you’ve seen a lot of properties being built recently. It will be interesting to see how the new hotels are accepted in the market and how they keep their rates up with supply slightly outpacing demand,” said Jan Freitag, senior vice president of lodging insights at STR.

Sprucing up

With so many new hotels opening, many of Houston’s older establishments have moved to update their properties. Many of the upgrades include new amenities like fitness centers and spa areas.

Near the George R. Brown Convention Center, the Hilton Americas-Houston hotel is moving ahead with a $37 million project, $31,000 of which is expected to be spent on each of the roughly 1,200 guest rooms.

Not far away, the Four Seasons Hotel Houston has been approved for its own $16.6 million renovation project — just three years after it invested millions of dollars in upgrades leading up to the Super Bowl.

The next month, Florida-based Driftwood Hospitality Management announced it was planning its own $35 million overhaul on nearly every aspect of the Hilton Houston North, which is located at 12400 Greenspoint Drive.

The pressure to compete is even more intense for hotels located outside of the Central Business District. Because so many new hotels are located near downtown, out-of-town convention-goers have less need to book a room in other parts of the city.

“An event effectively needs to have 3,000 attendees to push people out of downtown,” McCaslin said. “Some of the other markets have been forced to drop their rates to get occupancy.”

And with labor costs only going up, reducing room prices can severely impact a hotel’s bottom line, STR’s Freitag said.

Even with the challenges facing Houston’s hotel market, industry experts say the Bayou City is still a good place to be in the hotel business.

STR’s Freitag noted that the number of rooms sold in Houston in 2018 was up 3.5 percent, nearly double the national average and slightly higher than Texas as a whole.

Much of that can be attributed to Houston’s booming convention business.

John Solis, senior vice president of sales and client services at Visit Houston, said the city’s convention business set records in 2018 and 2019, and expects similar success this year.

“Having accommodations in the vicinity of the convention center has made it much more walkable for visitors. That saves associations the expense and hassle of booking shuttles,” Solis said.

Industry experts say hotels across greater Houston are doing so well that the market for trading ownership has all but dried up.

Ray Hankamer, founder of Houston’s Hankamer & Associates Brokers, has owned and managed dozens of hotels over the past four decades. But he said few owners are looking to sell, especially at smaller or mid-sized hotels with between 70 and 120 rooms.

“Many are owned by second- or third-generation families,” Hankamer said. “They’re making money, so why would they want to sell?”

[jmitch94]

 

Quote

In late 2019, Houston saw the opening of Cambria Hotel Houston Downtown Convention Center at 1314 Texas Ave., the historic building formerly known as the Great Southwest Building and the Petroleum Building; and AC Hotel by Marriott Houston Downtown, the 105-year-old building at 723 Main St., which most recently served as The Houston Bar Center.

 

 

How did I not know about this. So glad these old buildings are being used and not torn down. 

[bobruss]

I just drove by it the other day and was amazed to see the Cambria Hotels sign burning brightly. I couldn't believe it opened with little fanfare and we hardly discussed the process.

It progressed under our radar.

Quote

 

 

[CaptainJilliams]

Looks like this one is on the way:

 

New W Hotel for downtown Houston moving forward

https://www.click2houston.com/news/local/2020/01/17/new-w-hotel-for-downtown-houston-moving-forward/

 

Vote of 10-3 in favor of the W.

Edited January 17, 2020 by CaptainJilliams

[HoustonBoy]

I wish it was a more architecturally significant W hotel. It looks kind of boring and W is not really on the forefront of being trendy anymore. 

[Luminare]

1 hour ago, CaptainJilliams said:

Looks like this one is on the way:

 

New W Hotel for downtown Houston moving forward

https://www.click2houston.com/news/local/2020/01/17/new-w-hotel-for-downtown-houston-moving-forward/

 

Vote of 10-3 in favor of the W.

 

and of course they didn't get a timeline. Anyone else able to get a timeline?

[West Timer]

 Goo goo ga joob.

Edited January 17, 2020 by West Timer

[monarch]

2 hours ago, HoustonBoy said:

I wish it was a more architecturally significant W hotel. It looks kind of boring and W is not really on the forefront of being trendy anymore. 

^^^ the aforementioned "W" illustration is just a VERY EARLY rendering/depiction from an artist.  i am most certain that NEWER renders/concepts will be revealed in the coming days/weeks.

[mattyt36]

17 hours ago, monarch said:

^^^ the aforementioned "W" illustration is just a VERY EARLY rendering/depiction from an artist.  i am most certain that NEWER renders/concepts will be revealed in the coming days/weeks.

 

Well that's great news . . . new concepts and renders always bode well.  I mean developers always restrain the bold, imaginative, and fanciful until a budget is involved.  🙄

 

[Naviguessor]

Don’t celebrate yet. Still has to pass City Council. 

[downtownian]

On 1/18/2020 at 10:12 AM, mattyt36 said:

 

Well that's great news . . . new concepts and renders always bode well.  I mean developers always restrain the bold, imaginative, and fanciful until a budget is involved.  🙄

 

 

Not a fan of giving huge subsidies to outdated and out of fashion corporate hotel chains. W's had a cultural moment 10-15 years ago but don't seem relevant anymore. Wish it was a boutique by a well respected hotelier or giving tax breaks to local small businesses. 

[gmac]

5 minutes ago, downtownian said:

 

Not a fan of giving huge subsidies to outdated and out of fashion corporate hotel chains. W's had a cultural moment 10-15 years ago but don't seem relevant anymore. Wish it was a boutique by a well respected hotelier or giving tax breaks to local small businesses. 

 

Shouldn't be giving out breaks to anyone at this point. If you want to build, build, but you (the developer) pay for it.

[mls1202]

The article stated "The approval gave the green light for construction of the hotel that will be on top of the George R Brown Convention Center parking garage."

 

I'm confused...I thought the Houston First building on which it would be built was 100% an office building.  Am I misunderstanding?

[rechlin]

No, the article is misleading.  The Houston First building is attached to a parking garage.  The hotel will be on top of the Houston First building, not its attached parking garage.

[Luminare]

8 minutes ago, rechlin said:

No, the article is misleading.  The Houston First building is attached to a parking garage.  The hotel will be on top of the Houston First building, not its attached parking garage.

 

The first part is correct to the best of my knowledge. The second part isn't. Per the render it will be built on top of the garage which I believe was designed to handle the load of what would be put on top. It wouldn't make since to put the hotel on the tower itself as it wasn't designed to handle that load, and that would mean ripping up the roof and the entire top deck of that building. Unless others have further info to clarify.

[nate4l1f3]

7 hours ago, Luminare said:

 

The first part is correct to the best of my knowledge. The second part isn't. Per the render it will be built on top of the garage which I believe was designed to handle the load of what would be put on top. It wouldn't make since to put the hotel on the tower itself as it wasn't designed to handle that load, and that would mean ripping up the roof and the entire top deck of that building. Unless others have further info to clarify.

If you look at the building on google earth and compare it to where the hotel will sit in the rendering, it certainly looks like it will sit on top of the office building and not the garage. But I’m with you, I always thought it would go on top of the garage. That makes more sense. 

[Nate99]

As usual, I don't actually know any specifics here, but the first thing that popped into my head in either scenario would be how disruptive it would be to continue the tower upwards on all of the builing infrastructure. Utilities, elevators, etc., would have to have some pretty innovative (expensive) engineering for them to just pick up where they left off and keep going up with everything a hotel takes to run efficiently.  

 

In my uneducated mind, seems like some additional work in the footprint of garage portion would make the effort more manageable, but there was talk of building it for the next phase, so there could be Easter eggs of engineering tucked into what is there now that I can't see. 

[Montrose1100]

Until we get the new/confirmed rendering, we won't know. But the current one is tricky to the eye.

 

The W's amenity deck looks to be on the roof of the Partnership Tower. There are visible columns sticking out of the roof on google earth that don't look like functional roof equipment. Did everyone forget how MD Anderson added height to their Med Center Tower a few years ago? Anyone know how it disrupted their operations?

 

 

 

However, the render shows the skywalk towards the front of the tower - which in reality is towards to "back" in the angle facing the rendering.

 

 

On 1/16/2020 at 10:20 PM, monarch said:

 

 

 

[bobruss]

On page 7 of this thread Urbanizer entered images of the structure for the garage office building and hotel. Its about the fourth entry on the page and its one of the last images that he provided.

It appears from the elevation view of the planned project the office building sits partially on the garage.and the hotel sits directly on top of the office building.

Scroll back and if someone can move those images up to now you can see what I'm talking about.

[phillip_white]

They could just extend the columns from the current roof up to the next floor plate and begin pouring. The current roof area would be a maintenance and storage floor that is wrapped in glass like the rest of the tower. The buffer between the hotel and office portions would also keep the construction noise down. Once the hotel is ready, you would build out the elevator infrastructure and connect them once complete.

[rechlin]

18 hours ago, Luminare said:

 

The first part is correct to the best of my knowledge. The second part isn't. Per the render it will be built on top of the garage which I believe was designed to handle the load of what would be put on top. It wouldn't make since to put the hotel on the tower itself as it wasn't designed to handle that load, and that would mean ripping up the roof and the entire top deck of that building. Unless others have further info to clarify.

 

The rendering pretty clearly shows the W hotel on top of the tower, not the garage.  The amenities deck is on top of the front part of the tower and the W hotel is on top of the back part of the tower.  None appears to be on top of the garage.  And I watched them build that garage; there is no way that garage is supporting a hotel like that.  So no, I am pretty sure you are incorrect.  Yes, a little bit of the garage is incorporated into the existing tower, but I'm not counting that since that's well below the beginning of the hotel.

Edited January 22, 2020 by rechlin