FORT SMITH (KFSM) – A property development group based in Mississippi has bought the Fort Smith Holiday Inn City Center and expects to renovate it into a new hotel, according to the group’s president.
Arkansas Hospitality Group, LLC finalized the sale of the hotel Friday (Nov. 21). President Ike Thrash said the group plans to renovate and re-brand the Holiday Inn into a different independent hotel, similar to what the company did with The Chancellor Hotel in Fayetteville.
Thrash said Arkansas Hospitality Group, LLC bought the Holiday Inn for $3 million.
"It had been in foreclosure for two or three years," Thrash said. "It just kind of got forgotten."
Thrash said the group was drawn to Fort Smith after looking at about six other hotels in the region that were slated for foreclosure.
“We saw Fort Smith, and we really liked it. We really like the downtown,” Thrash said. "The renovation itself will probably be probably in the seven to eight million dollar range. Every wall and floor and air conditioner pretty much everything you can see in the interior will be changed all of the furniture will be thrown away."
Thrash said 90% of the employees at the Holiday Inn will keep their jobs, but Mike and Brenda Payne didn't make the cut.
Mike Payne, who had been a bell captain at the hotel and had worked there for 24 years, said his manager called him Wednesday (Nov. 19) to tell him his services were no longer needed.
Brenda Payne said she had worked for the Holiday Inn as sales director.
"I was told that it was my position and my salary," she said.
According to the couple, about seven other employees were cut along with their jobs. Thrash said Arkansas Hospitality Group, LLC hopes to add more positions once the hotel renovation is done in about 11 months. The grand re-opening of the re-branded hotel is scheduled for August 2015, Thrash said.