AABP EP Awards 728x90

How and when the convention hotel will pick a brand and operator

/wp-content/uploads/2022/11/BR_web_311x311.jpeg
 

Management companies and hotels that want a piece of the Iowa Events Center Hotel have a June 12 deadline to submit preliminary proposals.

 

The winner of that selection process will be announced by late July, said Ellis Katz, director at Project Management Consultants LLC, the Cleveland company that has been hired to conduct the search.

 

Ellis, whose company acts as the owner’s representative for the Cleveland Convention Center Hotel, which will host this year’s Republican National Convention, said he has taken a two-pronged approach to finding a flag and operator.

 

He has sent out both requests for qualifications and requests for proposals to well-known hotel operators as well as two third-party management companies.

 

The management companies, if selected, more than likely would bring the flag with them. One hotel company visited Des Moines on Thursday, and another is expected today.

 

Katz said he has reached out to Marriott, Hyatt, Hilton, Omni and Starwood, which operates Westin and Sheraton hotels.

 

Though Greater Des Moines is considered a riskier market for a convention center hotel simply because of population, Katz said he has not encountered any problems getting the attention of hotel and operating companies.

 

“We expect we’ll get a good response,” he said. “All I can tell you is that the enthusiasm of those who are beginning to submit is pretty high.”

 

The hotel will be owned by the nonprofit Iowa Events Center Hotel Corp., which is finalizing a contract with the Weitz Co. to be the project developer. Project Management Consultants is working with Weitz on the project.

 

Ellis said he requested qualifications and proposals in an effort to find companies that had experience filling both hotels and events centers.

 

Global Spectrum, which operates the Iowa Events Center under contract with Polk County, does not manage hotels.

 

Companies will be expected to demonstrate how they would “pitch” the facility, the type of hotel brand name that they would bring to the city and their understanding of the market.

 

After the initial documents are submitted, a list of operators will be narrowed to three or four before the final candidate is selected, Katz said.

 

“I think we’re going to get strong submittals from the third-party managers and the brands,” he said.

 

Meanwhile, the Iowa Economic Development Authority is expected to give conditional support to a request to approve the creation of the Iowa Convention & Entertainment Reinvestment District, a 25-acre area that follows Fifth Avenue from the site of the proposed hotel at Fifth and Park Street south to Court Avenue.

 

The area includes the $101 million hotel, the rehabilitation of the Randolph Hotel and adjoining buildings, and the construction of a Hy-Vee grocery store and apartment complex at 420 Court.

 

If approved, a portion of hotel/motel and sales tax revenues would be funneled into the district and would be used primarily to underwrite the financing of the hotel. Read more about the financing model >>>

momentum brd 090123 300x250