The Value of Preservation Consultants to Historic Hotel Developers

By John Tess President & CEO, Heritage Consulting Group | August 25, 2010

This affinity for "character" has led to the rise of boutique hotels, defined not only by size, but by design - typically historic in nature. One of the pioneers was Bill Kimpton, whose foresight created the Kimpton Group. Others leaders in the field include Ian Shrager and Andre Balazs. This affinity for character has also prompted larger projects, such as Sage Development's proposed Marriott Renaissance in a redeveloped Portland, Oregon department store which will have 330 rooms.

As a result of the success of these and other pioneers, hotel developers are often on the prowl of unique opportunities, thinking about the hotel potential of transforming warehouses, office buildings, Masonic temples, train stations and more.

In one very large way, government policy supports this practice. Tax laws allow 20% of the costs of a "certified" rehabilitation of a "certified" historic structure to be used in the form of a tax credit. Under the right circumstances, that credit can also be transferred and sold, thereby bringing money into the rehabilitation project itself. Complementing this federal program often are state and local incentives that use many of the same rules, guidelines and even reviews. All are designed to make the re-use of old buildings financially viable.

Before running out and buying the closest white elephant, however, developers need to temper their temptation to use these incentives. The rules and reviews governing the tax credit process are intricate and in some cases run contrary to what may seem like common sense. The key to success lies with due diligence and in hiring the right preservation professional.

Before we can understand the challenges, it is important to understand a bit more of the tax credit program. As I mentioned, the program requires a "certified rehabilitation" of a "certified structure". In general terms, a "certified structure" means the building is either listed on the National Register of Historic Places or listing as a contributing structure in a National Register historic district.

While there are some exceptions, the baseline for whether a building might be listed on the Register is that it must be at least 50 years old. The individual building itself does not need to be nationally important or even architecturally distinguished. It may be locally significant, and maybe significant for its association with an important person. It may even be important as an example of how a design has responded to development in the community - say a 1954 motor court reflecting the changing nature of hotel design in response to the automobile.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Lori Raleigh
Carolyn Childs
Andy Dolce
Christopher G. Hurn
Jane Segerberg
David Lund
Frank Meek
Brenda Sandoval Valdes
Todd Walter
Trevor Stuart-Hill
Coming up in June 2018...

Sales & Marketing: Opinions Matter

Hotel Sales and Marketing Directors manage a complex mix of strategies to attract and convert customers into guests. Part of their expertise includes an awareness of customer behavior during the reservation process, so they can make sure their hotel is favorably positioned. One such trend is the growing popularity of travel review sites. According to one recent survey, 61% of prospective customers consult online reviews in order to validate information about the hotel before making a purchasing decision. Another survey found that the average hotel customer reads between 6-12 reviews across 4-10 properties before making a final decision on where to stay. Similarly, other studies have shown that consumer reviews are a more trusted source of information for prospective customers than other kinds of marketing messaging. In fact, reviews are often considered to be as influential as price regarding whether a customer decides to complete a purchase or not. Plus, travel sites with the most reviews - including recent reviews from satisfied customers and thoughtful responses from staff - were also found to be the most appealing. So having positive reviews on a travel website is essential and can help to increase a hotel's conversion rates dramatically. Of course, there are all kinds of additional marketing strategies for sales and marketing directors to consider - the importance of video and the emergence of live streaming; the implementation of voice search; the proliferation of travel bots; and the development of Instagram as an e-commerce platform. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.