John Q. Hammons hotels may be bought out

[metro]

If this turns true, maybe we can petition the new owners to reconsider the Bricktown hotel development into something nicer.

John Q. Hammons Hotels confirms it has approved transaction agreement from Investor Group, Hammons
Posted: Wednesday, May 25, 2005


John Q. Hammons Hotels, Inc. confirmed today that a special committee of its board of directors has approved an agreement to be entered into between an investor group wishing to purchase the hotel group and its principal stockholder, John Q. Hammons.

The Hammons group owns both the Renaissance and Courtyard by Marriott hotels in downtown Oklahoma City and is expected to build a third hotel in Bricktown later this year. The hotel is rumored to be another Marriott brand hotel, Residence Inn.

Hammons officials indicated in a prepared release issued late this morning that the agreement between the investor group, which they declined to name, and Mr. Hammons describes the various arrangements proposed to be entered into between these parties in connection with the investor group's proposed acquisition of the company.

Either the investor group or Mr. Hammons may terminate the transaction agreement if, on or before June 2, 2005, the parties have not signed definitive agreements for each of the arrangements described in the transaction agreement, the release said.

Hammons Hotels board of directors is allowing the parties until June 30, or the termination of the transaction agreement, to finalize these agreements.

The Hammons news release also indicated the investor group also reconfirmed their offer to acquire the company's Class A shares for $24 per share and that the group acknowledged that Hammons' Special Committee has reserved the right to recommend to the board that any merger be subject to the approval of a majority of the Class A stockholders, as well as Mr. Hammons and his affiliated entities.

A copy of the transaction agreement has been furnished to the Securities and Exchange Commission as an exhibit to a Form 8-K submitted today by the company.

Commenting on the transaction agreement, the chairman of the Special Committee, David Sullivan, said, "We are pleased that the investor group and Mr. Hammons have reached agreement on the basic terms of their proposed transactions. Given the complexity of the various arrangements to be entered into between them, we believe this represents meaningful progress. However, there remains no assurance that the investor group and Mr. Hammons ultimately will reach agreement on these arrangements."

John Q. Hammons Hotels wns 46 hotels located in 20 states, containing 11,370 guest rooms or suites, and manages 14 additional hotels located in seven states containing 3,158 guest rooms or suites. The majority of the 60 hotels operate under the Embassy Suites, Holiday Inn and Marriott trade names.

[brianinok]

I don't know where the article got their information on the Bricktown hotel, but JQH has announced that the hotel will be a 230-suite Embassy Suites. Construction was scheduled to start this summer.

[BricktownGuy]

I am not sure if thats true anymore, brianinok.

There have been several sources that say the project has been scaled back to a 151-room Residence Inn. Which from what I have heard was his initial plan for the site.

[metro]

Yes, Brianinok, I'm not sure if you have been following this story on this site as well as other sources, but rumor has it that it was scaled back to a Residence Inn and on a smaller scale as well. This is why I previously stated that if this becomes true, maybe we can petition the new owners to reconsider the original plans or something nicer

[soonerguru]

It's more than rumor. The Embassy concept is off the table at this point. We're going to be sidled with another major suburban-type development in the downtown core. Wonderful.

[Luke]

Yeah, unless this is a new concept Residence Inn, I really don't know that I've ever seen a really urban looking Residence Inn. But hey, if it's in Lower Bricktown it may as well be another suburban development...

[Patrick]

Yeah, unless this is a new concept Residence Inn, I really don't know that I've ever seen a really urban looking Residence Inn. But hey, if it's in Lower Bricktown it may as well be another suburban development...

LOL! It would fit right in, wouldn't it? Personally, I'd like to see Hammon's latest proposal scrapped altogether. Sure, his two other hotels are nice, but a Residence Inn isn't what we need for Lower Bricktown.

Just FYI: he scrapped the Embassy Suites concept because he claimed there wasn't enough land for parking. The OK Redhawks were originally going to give him all of their parking lot across the street for parking for his 10 story convention type Embassy Suites, but that changed when the Redhawks started looking at other uses for the land.

Problem is, now it will be difficult to get someone else to develop that land. Hogan already signed the deed over to Hammons, so Hammons owns the land.

[metro]

Sounds like we need to get Hammon's group's contact info and start spamming them until they get the hint, hey it worked for UO and Karey Carney

[Patrick]

Try this:

http://www.jqh.com/index.cfm/fuseact...pageid/23/id/6

[metro]

Thanks Patrick for the link. I filled out there contact form and demanded that they use more creativity and reconsider the original proposal. We will not settle for another suburban type development in our urban core. Everyone PLEASE PLEASE click the link above and let them know!

[Patrick]

Unfortunately, at this point, with possible new owners coming in, who knows what will happen to that site. New owners may decide to change things considerably, maybe not even build there at all. We'll just have to see. Hopefully new owners will be more creative. I'm not sure if we'll get anywhere contacting JQH at this point, since they're about to leave the table, but it's worth trying.

[BDP]

Just curious, but what ever happened to putting parking underground? iS it just not cost effective in OK?

[Patrick]

I actually talked to Randy Hogan about thus when built Harkins. He said building parking under the theater would've cost about 10 times what surface parking cost.

[metro]

Yeah but in the long run it would be worth it when LB is finally developed completely. Also, I don't think anyone can complain if they at least don't do something about the situation and email them how we feel. Even if they are sold, I'm sure they will get the records of any inquiries regarding the site. This will help them make the executive decision of what to do with the property. And on the other hand, if they do not sell out, then it definetely can't hurt.

[Pete]

Embassy Suites was okay but a Residence Inn would not be IMO. Completely inappropriate and far too I-40 & Meridian.


I can't believe that's the best hotel use they could come up with for that property.

I'll certainly send them an email -- thanks for the contact information.

[Luke]

A hip, trendy new concept is what is needed.

[brianinok]

Many big cities have urban Residence Inns. Seems like I've seen them in Philadelphia and Washington DC. It is like an urban Courtyard (like the one we have downtown). While an Embassy Suites would be better, an urban RI wouldn't be the end of the world. You have to remember, this is not just about providing a service to Oklahoma City. JQH has to make money. A RI would put all three of their OKC hotels in the same reservations system-- making it much more easy in booking conventions and having 1 central in-house reservation and sales team (if they convert to that in the future).

[metro]

I agree Luke, I would love to eventually see a "W" hotel

[HOT ROD]

W would be in the CBD.

By the way, here is an excellent example of an urban Residence Inn, http://marriott.com/property/propert...rshaCode=YVRRI . Granted, its in Vancouver BC Canada, but it does go to show that RI does have urban centre concepts which could work for OKC.

But I agree, downtown OKC needs an Embassy!!!! It would only compliment the collection of hotel offerings - Renaissance, Courtyard, Sheraton, Hilton Skirvin, Colcord (Intercontinental?? or Omni??).

I will go to the link Patrick provided. Nonetheless, we need MORE downtown hotel rooms - I think 3,000 in the downtown core would be a start.

[BDP]

I think that RI is way bigger than the one they're talking about. The bottom line is that if it is a property similar to the stuff on Meridian it will actually have a lowering value effect on LB and really seperate it from Bricktown. I think it's interesting that these developers are benefitting so greatly from Bricktown's draw due to its unique setting in OKC, but then they choose to build developments that detract from that very asset.

[HOT ROD]

the example I gave might be bigger than what is planned for Bricktown, but it was meant to show that RI does have an urban centre format that could work for downtown OKC.

[BDP]

it was meant to show that RI does have an urban centre format

Which would be a departure from what has been built in LB to date, so I just don't see it happening.

[HOT ROD]

hold your head up, (not down), dude!

[Patrick]

As downtownguy has mentioned in th epast, one can only hope that this is just a temporary start for Lower Bricktown. Hopefully as the area builds, more parking lots will be filled with development. You have to look back at how downtown was originally developed. Before Urban Renewal, we had a lot of shorter buildings downtown. But, over time, space filled up, and the need to build up took over. Urban Renewal led ot the skyscrapers we have today. If it wasn't for Urban Renewal, we probably wouldn't have the urban downtown we have today.

Okay, okay, I shouldn't be praising urban renewal as much as I am, but you get the jist.