John Q. Hammons Hotels & Resorts’ stalled $90 million hotel project in Colorado Springs, Colo., reportedly is attracting potential buyers, but company officials say a sale would not impact a proposed hotel in downtown Springfield.
Springfield-based Hammons Hotels began construction on the Colorado Springs Renaissance Hotel Spa and Conference Center in April 2008, and put the project on hold in October 2009, when a mechanic’s lien was filed by general contractor Flintco Inc.
Potential buyers have contacted Nor’wood Development Group, the Colorado Springs company developing the entertainment and retail center, where the stalled $90 million, 300-room hotel is located. But a sale cannot move forward until the $24.6 million mechanic’s lien is settled, according to attorney Richard Walters, Husch Blackwell LLP partner specializing in real estate and construction law.
“We’re aware of a couple potential interested parties,” said Fred Vietch, a vice president with Nor’wood Development Group, the company developing the 138-acre InterQuest Marketplace.
Vietch declined to name the parties.
The two interested parties have contacted Flintco, confirmed Dana Birkes, the company’s vice president.
Justin Harris, a Hammons Hotels spokesman and general counsel, said via e-mail a sale of the stalled project belonging to John Q. Hammons Hotels & Resorts would have no impact on a downtown Springfield hotel the company agreed to build in 2008.
Founder John Q. Hammons said in May it couldn’t obtain financing to follow through on its plans to build a $50 million, 150- to 200-room hotel on a 1.7-acre site next to the Springfield Expo Center. In the original agreement with the city, Hammons was to pay $7 million for the land and adjacent car park to build the hotel. Construction was to begin by April 1.
A study of how best to use the site is under way by Chicago-based Hunden Strategic Partners. Hammons Hotels, the city and the Springfield Convention and Visitors Bureau are paying for the $39,000 study, to be completed in late February or early March.
Harris said the company has no other hotels for sale, and he declined to comment further on the Colorado Springs property.
Flintco and Hammons Hotels remain in negotiations to resolve the lien, Birkes said, adding that due to the companies’ long history, she’s confident the lien would be resolved.
“We’re still optimistic that there is going to be a positive solution, and this is part of the process,” Birkes said, declining to speculate on when the lien might be settled.
Vietch said while Nor’wood has fielded interest from potential buyers, his company is only the site developer and negotiations will have to be with Hammons Hotels and Flintco.
Harris said all of Hammons Hotels’ projects are on hold, including properties in Denton, Texas, and Osage Beach. The company pulled out of a Wilmington, N.C., hotel project in August.[[In-content Ad]]
