GreenStreet: Mixed-Use Development At 1201 Fannin St.

[tigereye]

They'll be back

I would normally say this but I can envision a scenario where they may not. The Main St facelift in this block will essentially clear the path, removing all of the lounges the homeless only really congregate at by Sakowitz. And if Sakowitz adds ground floor retail as rumored, this adds activity to the area in addition the removal of their squating areas...

Sometimes, they'll try to squat at the fountain but the police officers that guard my place of employment will clear them to allow space for the employee smoking section.

Now if we can only do something about that damned corner mart...

[Tumbleweed_Tx]

The corner mart is what attracts them

[UtterlyUrban]

The corner mart is what attracts them

Not really.

It's the super-sized single beers and smokes available for purchase in the store that attracts them.

[adr]

Just as long as the  Dollar Nineteen Store stays open.  Saved me a trip to Target/Lowes/Kroger more times than I can count.

[Triton]

Construction for Hotel Alessandra is still posed to begin early next year.

[Howard Huge]

Construction for Hotel Alessandra is still posed to begin early next year.

You damn southerner

[mollusk]

Construction for Hotel Alessandra is still posed to begin early next year.

 

 

You damn southerner

 

The true term is "fixin' to."  

[fernz]

I heard from a higher-up at Gensler that there's a possibility this wouldn't be built. He wouldn't give me any details, so I don't know how strong that possibility is. I hope not very strong.

[UtterlyUrban]

I heard from a higher-up at Gensler that there's a possibility this wouldn't be built. He wouldn't give me any details, so I don't know how strong that possibility is. I hope not very strong.

With $54 oil, I would assume that every developer in town is looking much harder at every planned project that they have and is trying to cypher what the demand for the project will be in two years.

I would like this hotel to be built but, what does hotel demand in downtown look like in two years (after the two weeks of the Super Bowl)? The answer to that will be significantly dictated by where one thinks energy prices are going.

[Triton]

I heard from a higher-up at Gensler that there's a possibility this wouldn't be built. He wouldn't give me any details, so I don't know how strong that possibility is. I hope not very strong.

 

Uhhh... how about the guy who is actually developing this hotel who said it would start early next year just a few days ago....

[Tumbleweed_Tx]

I was told March

 

 

hotel demand will still be high since conventions don't depend on the cost of petroleum

[monarch]

please allow for us to remember, that this most unique and wonderful prospective development is a part of MIDWAY COS!  this company rocks!  need i say more...

[UtterlyUrban]

I was told March

hotel demand will still be high since conventions don't depend on the cost of petroleum

Good point.

But, I can say from personal experience that finding a hotel room in downtown Houston has been easy for the last 20 years. BUT, over the last 5 years, it has been more challenging. There are weeks that Houston is simply out of rooms anywhere near downtown. I know that houston has done a terrific job of attracting convention business and that business does provide a steady flow of room bookings. But, let's face it, energy-related business bookings provides the core, no?

[Gator Purify]

I was told March

 

 

hotel demand will still be high since conventions don't depend on the cost of petroleum

 

I'm glad someone else has raised this point, because I didn't want to be one of the first.  What do falling oil prices have to do with hospitality, residential, and non-energy-related office construction?  This question is partly rhetorical, but partly honest because I know a lot of knowledgeable people visit this forum.  A "sky is falling" attitude seems to be pervasive in a lot of these threads and I'm curious to know why.

[cloud713]

Not to mention what Monarch said.. This is Midway. They just had an article the other day about how they are moving forward with their new Memorial Green project undeterred by oil prices..

[UtterlyUrban]

I'm glad someone else has raised this point, because I didn't want to be one of the first. What do falling oil prices have to do with hospitality, residential, and non-energy-related office construction? This question is partly rhetorical, but partly honest because I know a lot of knowledgeable people visit this forum. A "sky is falling" attitude seems to be pervasive in a lot of these threads and I'm curious to know why.

For Heavan's sake! Hospitality has much to do with energy prices in sectors of this town. While it is true that downtown has a bit of a cushion from conventions, I would suggest that much of the "core" hotel bookings downtown are related to "business" people..., lawyers, sales, PR, consultants, and company employees from other offices, I would further suggest that many of those folks are related to energy companies (downtown). If those same companies need to cutback due to the price of oil, descetionary travel if one of the first things cut.

With the decline in oil pricing, if it stays at this level for a protracted time, I would expect that hotel bookings downtown from "core" business people, will fall. How much they will fall is open for debate but if oil stays in the 50's or lower for a year or two, the folks traveling in on business with all the entertainment money for dinners and booze, will shrink.

IMO downtown Houston is not yet a tourist or convention market, it is a business market and is subject to the whim of the local economy. Perhaps one day, conventions and tourism will dominate downtown. But, for Now, I think that the business cycle is what drives core profits at downtown hotels.

[toxtethogrady]

The problem is oil markets turn on a dime. At least analyst at Bloomberg thinks oil will be back to $80 by Q4 of 2015. Al Naimi is an absolutely unflappable card player.

[UtterlyUrban]

The problem is oil markets turn on a dime. At least analyst at Bloomberg thinks oil will be back to $80 by Q4 of 2015. Al Naimi is an absolutely unflappable card player.

True.

I have also seen predictions of $30 oil and $70 oil by 2016. Bottom line: nobody knows. Real easte Developers need to simply make and educated guess like everyone else. We shall see who bets on $80 oil in two years and who does not based on what projects start over then next six months and which do not.

[Luminare]

I think people are assuming these things because they think the market, with ALL the current players, will be the same over the next year. I think things will start to level off as weaker players are pushed out (African nations, Venezuela, Russia). Once that happens then the supply will go down and prices will rise again. OPEC is officially dead and they do not care about the fall of prices because they can deal with it, but if they think that we (the US) are going to go down without a fight then they have another thing coming. The US will soon become a net exporter of energy. With the rise of fracking its going to happen at some point. This is capitalism at work folks. There will be peaks and valleys. The biggest change out of all of this that this might be the last time that "OPEC" will be able to control the price and instead in the future it will be left to the global market.

 

 

And that's a rap. That was my 2 cents on this oil biz. If people are going to continue to be derail every thread with this same topic I'm just going to take a little HAIF vacation for a bit. Starting.....now. Peace.

Edited December 22, 2014 by Luminare

[bobruss]

I wish it was that simple.

[toxtethogrady]

But things continue to move in this town. HBJ has a story about a halal franchise from New York moving in with plans for ten stores. Of all the places in Texas, it could only happen in Houston.

 

http://www.bizjournals.com/houston/morning_call/2014/12/nycs-halal-guys-chain-coming-to-houston.html

[Gator Purify]

For Heavan's sake! Hospitality has much to do with energy prices in sectors of this town. While it is true that downtown has a bit of a cushion from conventions, I would suggest that much of the "core" hotel bookings downtown are related to "business" people..., lawyers, sales, PR, consultants, and company employees from other offices, I would further suggest that many of those folks are related to energy companies (downtown). If those same companies need to cutback due to the price of oil, descetionary travel if one of the first things cut.

With the decline in oil pricing, if it stays at this level for a protracted time, I would expect that hotel bookings downtown from "core" business people, will fall. How much they will fall is open for debate but if oil stays in the 50's or lower for a year or two, the folks traveling in on business with all the entertainment money for dinners and booze, will shrink.

IMO downtown Houston is not yet a tourist or convention market, it is a business market and is subject to the whim of the local economy. Perhaps one day, conventions and tourism will dominate downtown. But, for Now, I think that the business cycle is what drives core profits at downtown hotels.

 

Thanks for your response, UtterlyUrban. The irony here is that we're discussing the possibility of Alessandra either struggling or not being built partly due to downtown Houston's lack of tourist attractions...and yet Alessandra sits in the middle of a three-block mixed-use development that could be/could've been a tourist attraction.

 

[lockmat]

But things continue to move in this town. HBJ has a story about a halal franchise from New York moving in with plans for ten stores. Of all the places in Texas, it could only happen in Houston.

http://www.bizjournals.com/houston/morning_call/2014/12/nycs-halal-guys-chain-coming-to-houston.html

I hope their gyros are authentic. I'm dying for a good one.

[UtterlyUrban]

Thanks for your response, UtterlyUrban. The irony here is that we're discussing the possibility of Alessandra either struggling or not being built partly due to downtown Houston's lack of tourist attractions...and yet Alessandra sits in the middle of a three-block mixed-use development that could be/could've been a tourist attraction.

You're welcome.

But, think about this: would you travel to another city to stay in a hotel that was in a 3-block "attraction"? Many would not - especially if there was little else for them. For downtown to become a tourist market, it will need a lot more.... A lot more. Some of it has started but much more will be needed. During this transition, downtown will be generally a business market supplemented with conventions.

Edited December 23, 2014 by UtterlyUrban

[tigereye]

But things continue to move in this town. HBJ has a story about a halal franchise from New York moving in with plans for ten stores. Of all the places in Texas, it could only happen in Houston.

http://www.bizjournals.com/houston/morning_call/2014/12/nycs-halal-guys-chain-coming-to-houston.html

Apologies for the off topic post but the Rotten Apple side of me likes this news as I do miss a good Chicken & Rice. Back East, Id wait 30 minutes in below freezing temps at 4am for Chicken & Rice (with the green sauce) at Sammy's Halal in Queens. I hope they have a food cart Downtown, would be great for the occasional work lunch...

Back on topic ...I think Hotel Valencia will be built given all the focus on GRB development for convention business combined with the high concentration of offices in Downtown that may need hospitality options for corporate travel. In addition, there's also active the redevelopment of the Main St & Dallas St corridors with Valencia being apart of a Midway property. Just too much "right place, right time" in its favor to stop this...

Edited December 23, 2014 by tigereye

[monarch]

so, does anyone know upon whether or not if they have actually decided upon this prospective hotel's namesake?  {HOTEL VALENCIA vs HOTEL ALESSANDRIA} there still seems to be a bit of ambiguity...

[Sky-guy]

so, does anyone know upon whether or not if they have actually decided upon this prospective hotel's namesake?  {HOTEL VALENCIA vs HOTEL ALESSANDRIA} there still seems to be a bit of ambiguity...

Correct me if I'm wrong, but I think it's Hotel Alessandra, not Alessandria

[Tumbleweed_Tx]

Hotel Allesandra is painted on to all the advertisements with all the GS tenants

[Mab]

In related news New Orleans might get the second Hotel Alessandra 

 

Two Canal Street Investors Inc. and Hotel Alessandra

Who is involved? Woodbine Development Corp. of Dallas, which points to a history of renovations, including recently acquiring the New Orleans Ambassador Hotel, is partnering with real estate investment firm Monday Properties, which has focused its business in New York and Washington D.C. The team also includes Valencia Hotel Group hotel management firm. 

Among other partners, co-developers are Steven Peer and Peter Arey, who were part of a different team that lost a bid for the World Trade Center in the city's last failed attempt to lease out the building.

What is the proposal? A 318-room "five-star, uber-hip" hotel targeted at affluent, younger travelers, 240 luxury apartments serviced by the hotel, a rooftop jazz club on the 33rd floor and restaurants on the first and 30th floors.

Project cost: $201 million.

Hotel brand: Hotel Alessandra. It would be only the second Alessandra brand. The first is under construction in Houston. Developers describe the hotel as "new luxury" that offers old-line amenities with a more upbeat style. 

http://www.nola.com/business/index.ssf/2014/12/former_world_trade_center_reno_1.html

[monarch]

is it just me, or does the hotel proposal for new orleans sound a bit taller, fun, and much more sophisticated than our GREENSTREET hotel alessandra proposal?  i was under the impression that the alessandra name was a bit exclusive to houston.  suddenly, it appears that this is just a bit to close for comfort.  i was really looking forward to this particular fabulous project.  well, now i don't know...