UPDATED: Sheraton Hotel Planned Near Wal-Mart HQ in Bentonville

Starwood Hotels & Resorts Worldwide Inc. plans to build its second Arkansas property in a super premium spot - right across the street from the headquarters of the world's largest retailer.

The company announced Tuesday that it plans a seven-story, 234-room Sheraton Hotel in Bentonville, adjacent to the Bentonville Plaza, a nine-story office building which is essentially across Eighth Street from the home offices of Wal-Mart Stores Inc. The hotel will be called the Sheraton Bentonville Plaza.

The hotel will be controlled by FBE Limited LLC, a private real estate investment firm. FBE owns the Bentonville Plaza and about 15 acres surrounding the building. Grubb & Ellis, Solomon Partners of Bentonville manages the property, which is about 80 percent occupied.

A press release about the development states that FBE plans to partner in the construction of the hotel with Redwood Capital Advisors LLC, which is also providing assistance in obtaining the construction financing. 

The Sheraton is to contain 6,500 SF of meeting space and is scheduled for completion in August 2011.

Plans for the hotel have not yet been submitted according to the Bentonville Planning Commission.

Paul Wischermann is president of Wischermann Partners of Minneapolis. The group will manage the hotel for FBE. He said the developers hope to break ground on the hotel in 2010, provided financing can be arranged.

Wischermann estimated the hotel will cost about $42 million to construct.

A press release about the hotel states that upon completion, there will be additional office buildings and restaurants on the 15 acres.

Starwood has only one other property in Arkansas, an Aloft hotel in Rogers, which opened last year.