A rendering of the Embassy Suites Hotel and Houlihan's restaurant, which will be adjacent to Arkansas State University's Red Wolf Convention Center.
O’Reilly Hospitality Management LLC said Tuesday that it has reached a franchise agreement with Hilton Worldwide Holdings Inc. to build a 202-room Embassy Suites Hotel and a 40,000-SF convention center on the Arkansas State University campus in Jonesboro.
O’Reilly, of Springfield, Missouri, said it will begin construction on the project, located on Red Wolf Boulevard adjacent to the Convocation Center and Centennial Bank Stadium, in the third quarter. Hilton Worldwide, of Tysons Corner, Virginia, owns the Embassy Suites brand.
“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,” CEO and Managing Partner Tim O’Reilly said in a news release.
The company said it is working with Butler Rosenbury Architects, also of Springfield, to finalize architectural and engineering plans, and that it is in “the final phases” of negotiating a design build construction contract with a general contractor.
“We are grateful to Tim O’Reilly and Hilton Worldwide for their commitment to this exciting development on campus,” Arkansas State Chancellor Tim Hudson said. “Their experience and reputation in operating first-class hotels and convention centers will ensure we have facilities that enhance tourism, educational opportunities and economic development in northeast Arkansas. The benefits for our students, their parents, alumni and visitors to Jonesboro will be tremendous.”
Arkansas State plans to use the hotel and convention center as a practicum site in the training of students enrolled in the hospitality management program offered by the marketing and management department in its business college.
The project, which includes a Houlihan’s Restaurant, has been in the works since 2013, when the university began soliciting proposals from developers.
Among those who solicited plans: an LLC led by the Keller family of Effingham, Illinois, which is now building another hotel/convention center complex on the other side of town.
The Keller project, a 165-room Hyatt Place Hotel and 37,000-SF convention center near the confluence of U.S. 63 and Caraway Road, has received financial support from the Jonesboro Advertising & Promotions Commission.
On March 2, the Jonesboro A&P voted 3-2 to give the Keller project $300,000 over the next three years, along with a hotel tax abatement of up to $200,000 per year during the same time frame. In doing so, it denied a request to give aid to the O’Reilly project, saying it couldn’t support both. The commission rejected a second request for funding in May.
The O’Reilly plans later received a boost from the Delta Regional Authority, which approved a $404,983 investment for site preparation and improvements on the project’s 11-acre location.
Tim O’Reilly has said he doesn’t believe the city can support two convention centers.
Arkansas State’s board of trustees approved the partnership agreement with O’Reilly in February.
Under the agreement, the developer will lease land for the hotel and convention center from the university for 50 years, with an option to renew for 40 more. O’Reilly will build and maintain the facilities at no cost to the Arkansas State.
O’Reilly will also pay Arkansas State $250,000 per year beginning in hotel’s fourth year. From 10th year on, O’Reilly will pay $250,000 per year, plus an additional payment based on changes in the Consumer Price Index.
During the February board meeting, ASU System President Chuck Welch said called the project “transformative” and said it would enhance Arkansas State without the burden of debt.
“We’ve discussed this for quite some time because the size and scope required considerable consideration,” Welch said. “We believe this could be transformative for our campus in a number of ways – including a hospitality management program, student recruitment, and visibility – that set us apart from our peers.”
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