$40 Million Luxury Hotel/conference Center For Lubbock

[mrfootball]

The 10-story Hotel will be located directly across from the stadium on the Texas Tech campus in the newly revitalized Overton Park Area.

Overton Park to be site of new hotel

BY CHRIS VAN WAGENEN

A-J BUSINESS EDITOR

Overton Park took another huge step forward Thursday following the announcement that the largest privately funded revitalization area will soon house the city's first upscale high-rise hotel.

Dallas-based Garfield Traub Development and Gal-Tex Hotel Corp. of Galveston said they intend to build and operate a 275-room full-service luxury hotel at the northeast corner of Sixth Street and Avenue X.

The $40 million or more structure, which will stand nine -to-10 stories tall and will feature a large an exquisite ballroom.

An additional component of the project will feature an adjoining 30,000-square-foot conference/convention center that's expected to be financed through local hotel-tax generating receipts as part of a preliminary agreement reached with the city.

"This is an exciting day for our community," said Delbert McDougal, chief executive officer of McDougal Cos., who company is synonymous with the Overton project.

Garfield Traub said it is now talking with local area banks - two of which include PlainsCapital and City Bank - about the financing of the structure.

However, Stephen Moffett, the company's financing director, said that funding could also come through another Gal-Tex unit.

"We think this property is going to be hugely successful," Moffett said.

Garfield Traub said the exact size, look, cost as well as how the property will be bannered is unknown at this time.

"We'll be tackling all of these issues over the next 90 days," he said.

Moffett said that in the case of bannering a hotel, such as making use of the Marriott name, the ownership must consider existing local properties, franchise fees and other cost considerations such as marketing.

However, Moffett said the ownership cold also consider a private label.

Gal-Tex for example, is the owner and operator of the scenic Moody Gardens in Galveston as well as other hotel properties.

In the meantime, Moffett said city officials are expected to pay a visit to Overland Park, Kan. near Kansas City where Garfield Traub developed a 512-room Sheraton hotel property.

The $92 million project, which was funded by tax-exempt revenue bonds, is owned by Starwood Hotels International and is considered one of the chain's top five properties in the U.S.

Raymond Garfield Jr., a principal in Garfield Traub said the company became interested in Lubbock in 2001 when McDougal Cos. first attempted a hotel deal in conjunction with Texas Tech.

"This community really needs a great hotel and that's just what we plan to deliver," he said.

Garfield said he has been working on and off with the city on a public/private partnership that could deliver a product all parties could agree on.

Mayor Pro-Tem Tom Martin said the arrival of the hotel was long overdue.

"If you're going to compete in attracting businesses and conventions, you have to have a top-notch facility," he said.

Martin said the city listened to a number of proposals, but in the end liked what Garfield Traub and Gal-Tex brought to the table.

Marcy Jarrett, executive director of the Lubbock Convention & Visitors Bureau, said the organization has already booked an FFA convention that will attract thousands of visitors to the city in July 2008 in anticipation of the announcement.

She said the new hotel was "critical in selling FFA," not to mention new groups as well as other professional organizations who have visited Lubbock in the past, but have never returned.

Jarrett said the new hotel will change "the face of hospitality" in Lubbock.

Moffett said the hotel's operators are already actively talking with Texas Tech Restaurant, Hotel and Institutional Management program, whose students would be actively sought out.

"Gal-Tex is very familiar with how to use intern students in such an operation," he said.

Mike Riley, president of Gal-Tex, said the company has been interested for awhile in securing a position in Lubbock.

"This market has outstanding potential, but we've known that for sometime," he said.

To comment on this story: