Hilton Worldwide granted final approval to Jonesboro Hotel Partners LLC and O'Reilly Hospitality Management LLC to build an Embassy Suites hotel and convention center on the Arkansas State University at Jonesboro campus.
Included in the $45 million project is the 40,000-square-foot Red Wolf Convention Center, a 202-room hotel and a Houlihan's restaurant. Plans call for the development to be located on Red Wolf Boulevard, adjacent to the Convocation Center and Centennial Bank Stadium.
Construction is scheduled to begin in the third quarter of this year. No contract has been finalized with a general contractor, but Butler Rosenbury Architects of Springfield, Mo., is handling the architectural and engineering documents.
"This is a very important project for campus and for Jonesboro," said Shawnie Carrier, executive director of Arkansas State's Delta Center for Economic Development. "We've been working on a convention center and hotel project in town for 10 years. The size of the center will be complementary to the Convocation Center and Fowler Center, and we haven't had an upscale hotel like this."
The ASU System board of trustees approved a 50-year lease agreement of 11 acres with O'Reilly Hospitality Management in February. The Delta Regional Authority announced in March it would invest $404,983 in site improvement for the project.
The university is planning to implement a Hospitality Management degree program that will partner with the Embassy Suites and convention center.
"We are very excited to immediately move forward with this incredible project in partnership with the key driver of visitors and conference attendees to the region, Arkansas State University," Tim O'Reilly, CEO of O'Reilly Hospitality Management, said in a news release.
"We are confident that the combination of the Embassy Suites by Hilton brand, the power of the Hilton Worldwide global sales and marketing systems and our deeply experienced O'Reilly Hospitality team of professionals will produce a successful hotel and convention center to serve the growing Northeast Arkansas area."
A second hotel and convention center project also is in the works for Jonesboro, through CFK Hospitality of Effingham, Ill. That project was approved by Jonesboro's Advertising & Promotion Commission for $300,000 in marketing and a 3 percent tax abatement for three years.
Commissioners tabled a request by O'Reilly in May. O'Reilly was asking for a five-year rebate on the city's 3 percent hotel tax.
E̶a̶r̶l̶i̶e̶r̶ ̶t̶h̶i̶s̶ ̶m̶o̶n̶t̶h̶ In July 2012,* Jonesboro City Water and Light agreed to loan $4.3 million to the Jonesboro A&P commission for the purchase of 14 acres for the CFK Hospitality project.
City spokesman Bill Campbell wrote in an email that "a groundbreaking for the [CFK] project is on our calendar for July 25." Developer Charles Keller said earlier this month that his hotel and 4,000-square-foot convention center could be completed in 18 months.
"I saw the press release from O'Reilly, and we're always excited about economic development in Jonesboro," Jonesboro Mayor Harold Perrin said in an emailed statement.
Business on 07/20/2016
*CORRECTION: Jonesboro City Water and Light agreed to lend $4.3 million to the city’s Advertising and Promotion Commission for a hotel project in July 2012. The date listed in this story was incorrect.