Hotel complex in works at ASU

If OK’d, partner to lease acreage

Arkansas State University is working to finalize a lease agreement that would allow for the development of a $35 million to $45 million on-campus hotel and convention center.

O'Reilly Hospitality of Springfield, Mo., once the deal is finalized, will finance the project. Arkansas State has selected 11.6 acres between Red Wolf Boulevard (U.S. 49) and Olympic Drive as the site of the development, which will have an estimated 200 rooms and 40,000 to 50,000 square feet of conference center space. A restaurant also is part of the proposal and construction is scheduled to begin "during the second half of the year," the school said.

"We are looking to monetize assets and we have land," said ShawnieCarrier, chief of staff for Chancellor Tim Hudson and interim director of the Delta Center for Economic Development. "This was an opportunity to partner with the city and make the dream of a convention center and hotel come true. We need a hotel and convention center."

O'Reilly Hospitality has hotel and convention center projects in Nebraska, Arizona, Missouri, Texas, Oklahoma and Montana. CEO Tim O'Reilly is currently working with Hilton to finalize an Embassy Suites franchise and a Houlihan's restaurant for the Jonesboro property.

"We're excited about partnering with Arkansas State and the city of Jonesboro to develop a modern, full-service hotel and meeting space in northeast Arkansas," O'Reilly said in a statement. "Ultimately this development will have a substantial positive impact on the region and make Jonesboro competitive to attract dozens of state and regional events."

Arkansas State and O'Reilly will work together on the development of a hospitality management program at the school.

Carrier cited Arkansas State athletics, conferences currently held on campus and the hospitality management program among the reasons the project makes sense on campus. HVS Consulting and Valuation Services is finalizing a feasibility study and will attempt to establish an economic impact for the development, the first of its kind in Northeast Arkansas.

Jonesboro has about 1,200 hotel rooms, according to the Jonesboro Regional Chamber of Commerce. It is the state's 5th largest city with more than 70,000 residents.

Hudson said in a statement that the convention center and hotel would "escalate Arkansas State's position as a destination and a driver for tourism and hospitality related economic growth."

Mayor Harold Perrin said the city has been working on a hotel and convention center project since he took office seven years ago. Jonesboro has about $500,000 that it could put toward infrastructure needs for this sort of project.

"Jonesboro is the hub of northeast Arkansas," Perrin said. "We have people with businesses in town who are leaving town to go out and do retreats, strategic planning meetings. We have a real opportunity here."

Business on 02/28/2015

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