Widespread Interest Shown For Hartford Hilton Project

HARTFORD, CT— Hartford Mayor Eddie Perez has reportedly received five proposals to buy and renovate the Hartford Hilton… each accompanied by a good-faith deposit of $250,000. According to a story appearing in The Hartford Courant, Mayor Perez gambled last month on the attractiveness of the Hilton property itself as well as that of the Hartford hotel market when he objected to the hotel’s purchase by The Procaccianti Group, pointing out that suitor was a non-union company. Two of the newly received proposals were said to have come from major players in Hartford development: The Wolman Group of Waterford, CT (developer of the convention-center hotel already under construction downtown); and Northland Investment of Newton, MA (redeveloper of the Civic Center Mall next to the Hilton). It was noted Perez has a role in the sale of the Hilton because the hotel was built on city land under a 99-year lease that gives the city the right of first-refusal if the hotel is sold. Procaccianti reportedly tendered a $6-million offer to buy the hotel from MeriStar Hospitality, but Perez and the company were at odds over the fate of the workers and the company’s construction timetable. (Procaccianti proposed to close the hotel for at least one year while undertaking a $15-million renovation.) Late last month, the city reportedly notified MeriStar it was exercising its right of first refusal and circulated a request for proposals from other developers to take over the project. Among the conditions set by the city were: a minimum purchase price of $6.1 million; a closing date no later than Mar. 12; a commitment to renovate the hotel; and a willingness to work with organized labor. It was claimed the city also indicated proposals to keep the hotel open during renovations “will be favored.” In addition to Wolman and Northland, proposals were also submitted by: SHUBH of Boca Raton, FL, a concern headed by Atul Bisaria (one of the previous owners of the Hilton, when it was the Sheraton Hartford); Kennedy Associates Real Estate Counsel of Seattle, WA, an investor of pension funds for various unions— including the hotel and restaurant workers— and partners with Richfield Management of Denver, CO (operator of 150 hotels); and The Shaikh Group of Rocky Hill, controlled by businessman Shahid Shaikh. SOURCE: The Hartford Courant