REINVESTMENT CONTEMPLATED FOR LANDMARK SPRINGFIELD HOTEL
Newgate LLC, an investment group led by Springfield developer Sycan B Corp. is looking at options for reinvesting in the Clarion Hotel site. Newgate acquired the Clarion (formerly the Doubletree) in late July of this year. The Clarion occupies fourteen acres of commercial ground near I-5, Beltline Road and Gateway Street in Springfield.

“The property is well located and very visible,” says Sycan’s President Richard Boyles. “These factors and the high traffic count on I-5, Gateway, and Beltline make the property highly desirable for a number of potential uses.” Boyles says Newgate acquired the property with a clear idea of the possibilities, but without a specific reinvestment plan.

Boyles says Newgate intends to continue operating the 30-year-old Clarion Hotel while it explores opportunities. The owners believe the hotel can continue to meet guest expectations for a few more years with modest reinvestment if necessary, but beyond that, a large investment would be necessary to reposition the hotel to meet the increasingly high expectations of 21st century guests. “We have all seen hotels that grow old, tired and uncompetitive,” Boyles says. “We just shouldn’t let that happen in the ‘Gateway to Springfield’. Sometime soon, it will make more sense to simply start over, and redevelop the property.”

There has been speculation in real estate circles that the property may be redeveloped as a retail center. Boyles comments, “National tenants have contacted us about the site. There is obvious potential, but this is also a tremendous hotel site. Our next step is to prepare a conceptual proposal to present to the City of Springfield. With that, we can get a handle on issues. Our first step was to be proactive with the Clarion staff. We have a great group of people and an impressive service culture. We talked to the staff about the various possibilities. Naturally, there will be some speculation and rumors circulating around the community.”

Boyles indicated that if retail development is pursued, Sycan will propose a new hotel project on its vacant Gateway-area property. “It is our goal to assure that Springfield continues to have a place to meet; a convention hotel with substantial meeting room space, banquet facilities and room count.” Boyles says that whether the group reinvests in the Clarion or a new hotel is constructed, the property will include amenities that are increasingly demanded by meeting planners and business travelers including in-room, high-speed Internet access, and wireless Internet access (WiFi) in common areas. “The Clarion competes directly with the Eugene Hilton and the Valley River Inn,” Boyles says. “I expect a modern convention hotel with the proper brand-name would compete that much more effectively.”

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