UConn to buy The Nathan Hale Inn

[UCONNJACK]

UConn to buy The Nathan Hale Inn with the intention to use it as a dorm down the road. This could open the possibility of a new hotel in Storrs Center.
http://boardoftrustees.uconn.edu/wp-content/uploads/sites/194/2014/12/Attachment-12.pdf

 

[Pudge]

A Bargain.

Standard rule of thumb is that Beds cost $80,000 per to build new. UConn is buying NHI for about $30,000 a bed if they really get 280 into the place. I suspect, given the Hotel's location, that the OFFER was from a Student Housing player. I don't think that NHI was ever a good location as a hotel.


(NOTE: of course, my $80,000 a Bed includes land ... and the purchase already included the land)

 

[huskypantz]

The NHI was operating at a loss. What is the incentive to build a new hotel in Storrs Center?

 

[Da_Aisijimo_Gou]

The NHI was operating at a loss. What is the incentive to build a new hotel in Storrs Center?

Even with Nathan Hale as competition, a leading global hotel brand believed it could operate profitably in Storrs Center. Was it Marriott? Better location, likely better and more efficient operations, better network and reputation, possibly more meeting space revenues, etc. For UCONN, another complementary tenant adding value, desirable meeting space, likely better quality hotel operations, etc. to Storrs Center.

 

[UConnJim]

The NHI was operating at a loss. What is the incentive to build a new hotel in Storrs Center?

Never take real estate P&Ls at face value. In the board letter, they detailed costs that will go away with the purchase. And, the interest costs are high. UConn identified about $800k of costs that would go away if you paid cash for the hotel giving you an unlevered cap rate of ~9%, which is good in this interest rate environment.

 

[Pudge]

Plenty of easy money available to build hotels. And, there's a strong push to be near hospitals & on edge of Universities. Developers will build if a bank gives them $$$

 

[jdb50]

Boy the Mansfield hystericals are going to go into orbit over this. Great move for UCONN getting 280 new dorm beds for one third the price of building new.

 

[DarthGrumpy]

Even with Nathan Hale as competition, a leading global hotel brand believed it could operate profitably in Storrs Center. Was it Marriott? Better location, likely better and more efficient operations, better network and reputation, possibly more meeting space revenues, etc. For UCONN, another complementary tenant adding value, desirable meeting space, likely better quality hotel operations, etc. to Storrs Center.

Posted this elsewhere; but, I have stayed at the Nathan Hale in several times for business and found it OK, call it Fairfield Inn/Hampton Inn level, and the bar attached to it is a quiet place for a drink when one is too old for Huskies and Ted's. It was also nostalgic for me because I lived in Alumni for 2 1/2 years and played Frisbee, soccer, etc. when the hotel was built. The location is odd for a hotel; but, I believe it was build there so that it had access to the conference facilities available in the South Campus dining hall (Rome?).

I agree that Storrs needs a hotel and a major brand would do well in Storrs Center. It's walkable to campus; but away from the craziness on weekends that most of us old times just can't deal with anymore, LOL. That said, the locals will fight any proposal for a hotel there as they did with the proposed Fairfield Inn for Storrs center. Of course, that will just be a warm-up to the fight between UConn and Mansfield when UConn tries to put a 6K hockey arena right across from Mansfield Town Hall and EO Smith High School at the corner of 195 and S. Eagleville Rd.

 

[Doggie Style]

NHI is a P.O.S., I hope it gets gutted sooner than later. I've always wondered why a real hotel like a Marriott was not in the plans for Storrs Center, it would be a game changer for the campus! I stayed at the Marriott on Marylands campus for the FB game a few years ago and it was mint! Last month I had a meeting at my corporate HQ which is more or less next to / on the Rutgers campus, and stayed at the Heldrich hotel on the RU campus.... it was hard to stay there while seeing all the B1G banners in the bar and some Mich teams walking around the hotel. Check it out below, it's about time we step up our game with the campus experience in Storrs!

http://www.theheldrich.com

 

[kibblesnbits]

Now that the NHI is off the table, if the locals won't approve a hotel for Storrs Center then UConn should include one in plans for the tech park. Many such developments include a hotel, often in the suites style to accommodate workers that may be on training or temporary assignments. I've often found they are a bargain for weekend visits as their primary customer base is largest on Sunday-Thursday nights.

 

[Palatine]

The NHI was operating at a loss. What is the incentive to build a new hotel in Storrs Center?

Profit. Just because one hotel loses money it doesn't mean there isn't a different way to skin the cat. Given the number of guest visits to the campus, someone will figure out how make a nickel.

 

[hexlub]

How very NYU of them.

 

[DarthGrumpy]

Now that the NHI is off the table, if the locals won't approve a hotel for Storrs Center then UConn should include one in plans for the tech park. Many such developments include a hotel, often in the suites style to accommodate workers that may be on training or temporary assignments. I've often found they are a bargain for weekend visits as their primary customer base is largest on Sunday-Thursday nights.

Any hotel on campus would be a good thing (Marriott is my personal preference as I am a gold member). Primary concerns with a hotel in the tech center is that it is isolated form the core campus (events at Jorg & Gampel, food at Storrs Center, etc.) and unless a conference center is attached to it (such as Syracuse, Cornell, Princeton, etc., all of which I have stayed at for work), it is far away from UConn's two cafeterias that are designed to host events - Hilltop and South Campus.

 

[Fishy]

The problem with the proposed Fairfield Inn was that it displaced 100 previously planned residential apartment units.

Those apartments were deemed desirable by the planning board and the zoning variance was denied. (Nathan Hale also opposed the variance on account of the hotel market already being rather thin.)

I don't think it was opposition to a hotel per se, but to the hotel in place of 100 permanent housing units in downtown.

I don't expect the same opposition to the hockey arena as it fits in with that particular zoning boards stated goals of increasing foot traffic and the prospects of local businesses in downtown.

I'm with Cone on the need for a hotel - we have an event at UConn every June and I'm not scheduling it if it means parking everyone at a Best Western a couple of miles from campus.

 

[Pudge]

A few more points (since I know a little about this) ...

Ever since Celeron was built on University land in the mid-1980s, the University has had many developments go through the Town of Mansfield, though they don't have to. Their land is exempt from those normal approvals. I was involved in Storrs Center (a long time ago) and don't think a Hotel was ever seriously in the Plan. The owners (both EdR - a student housing REIT - and Leyland from Tuxedo, NY are NOT hotel players anywhere). I heard that development is now on for North of 44. I guess a referendum was just passed that gets Sewer & Water to Willington and that brings a bunch of parcels into play. Is the Technology Park buildings third-party supported? I wonder. And, I should ask what the new Price Chopper sales per SF are; I bet that's doing well.

Hotels might be better off out past 44.

 

[Fishy]

A few more points (since I know a little about this) ...

Ever since Celeron was built on University land in the mid-1980s, the University has had many developments go through the Town of Mansfield, though they don't have to. Their land is exempt from those normal approvals. I was involved in Storrs Center (a long time ago) and don't think a Hotel was ever seriously in the Plan. The owners (both EdR - a student housing REIT - and Leyland from Tuxedo, NY are NOT hotel players anywhere). I heard that development is now on for North of 44. I guess a referendum was just passed that gets Sewer & Water to Willington and that brings a bunch of parcels into play. Is the Technology Park buildings third-party supported? I wonder. And, I should ask what the new Price Chopper sales per SF are; I bet that's doing well.

The hotel was an amendment to the original plan, but it was definitely moving forward until Mansfield was able to reject it.

As I understand it right now, a hotel will definitely be built in Storrs in the relatively near term.

 

[Palatine]

The problem with the proposed Fairfield Inn was that it displaced 100 previously planned residential apartment units.

Those apartments were deemed desirable by the planning board and the zoning variance was denied. (Nathan Hale also opposed the variance on account of the hotel market already being rather thin.)

I don't think it was opposition to a hotel per se, but to the hotel in place of 100 permanent housing units in downtown.

I don't expect the same opposition to the hockey arena as it fits in with that particular zoning boards stated goals of increasing foot traffic and the prospects of local businesses in downtown.

I'm with Cone on the need for a hotel - we have an event at UConn every June and I'm not scheduling it if it means parking everyone at a Best Western a couple of miles from campus.

I think that the Fairfield Hotel was denied because of some looney Mansfield politics, probably friends of the Hale Inn. Storrs Center is a much better location for a hotel rather than next to Eddy Hall.

I don't see how it affects apartments in any way. If there is demand for 100 more apartments, there is plenty of room and someone will build them.