Fresno Sees Activity in Downtown Hotels

Fresno, CA–Hundreds of hotel rooms could be added to downtown Fresno if efforts to renovate two shuttered former inns are successful. The 197-room Fresno Hilton, closed for four years, is being renovated by a new owner, McSam Hotel Group from New York, who plans to reopen it later this year as a Holiday Inn. “It is completely stripped,” said Steve Carr, chief financial officer of Packard Realty, which is doing the remodeling. “We have ordered the furniture and fixtures, have a design for the public areas and have contractors to renovate all the rooms.” The goal is to open the hotel on Van Ness Avenue across from the Fresno County Courthouse by years end. Meanwhile, a potential buyer for the beleaguered Hotel Fresno has stepped forward with plans to renovate the long-closed inn. The potential buyer, whose name was not released, is an experienced hotelier who would buy the 95-year-old structure for an undisclosed cash price, said Roger Story, a hotel broker involved in the discussions, according to published reports. The potential buyer plans to meet with city officials on May 29. “Depending upon what happens there, he could go forward,” Story said. The suitor steps forward at a critical time for the 205-room hotel, which has been vacant since 1983. The building has deteriorated to the point where the city considers it a health and safety issue and sued the owners for not making timely repairs. A judge recently refused to hold the owners in contempt, and a trial to determine whether the former hotel is safe was postponed this week while the parties tried to hammer out a settlement. A tentative settlement giving the current owners certain extended timelines has been reached, said Lance Armo, an attorney representing the current hotel owners. The settlement is not final until all parties have signed and the agreement is filed with the court. If the hotel is sold, “the new owner will step into the present owners shoes and comply with what the city wants,” Story said. The prospective buyer recently sold another property and wanted to invest the proceeds in other real estate through a tax-deferred 1031 exchange. Story said he was attracted to the historic Hotel Fresno because of its downtown location and its solid exterior construction. Parts of the building are deteriorating, but Story said the exterior is strong. “The concrete shell is in good shape,” he said. “The structure itself is the Rock of Gibraltar.” Armo said other potential buyers are waiting in the wings if the current deal falls through.