Hammons, based in Springfield, MO, plans to begin moving dirt early next year with delivery in mid-2004, Scott Tarwater, the company's vice president of marketing and sales, tells GlobeSt.com. The plan is to build a 19-story hotel with 250 to 300 suites and 25,000 sf to 30,000 sf of meeting space. It's buying property in Kucera Co.'s 110-acre development.
The project, however, has been caught up in the City of Austin's zoning and platting committee. Hammons is seeking a zoning change to allow construction of a 10-story building, rising 101 feet. The zoning staff recommended zoning that would cap the height at 60 feet. Then the zoning commission approved a 90-foot height. City council gets to make the final decision. Tarwater says the zoning issues should be wrapped up in about a month.
Hammons owns and operates 47 hotels with more than 11,600 rooms in 20 states and manages nine other hotels. Most of its properties are under the Holiday Inn and Embassy Suites brands. In its most recent financial results, Hammons reported RevPAR of $61.86 for the 2002 first quarter, 6.4% higher than the 2001 first quarter.
Hammons operates five hotels in Texas, including an Embassy Suites near Dallas-Fort Worth International Airport that, Tarwater says, does "quite well." The company hopes to copy that performance in Austin. Tarwater says Hammons has studied the Austin market for awhile, especially when the airport moved from its more central location to the southeast sector. "We like what we see in Austin," he says. "Though the market is down now, it's a very resilient area.
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