There may be a buyer for Galveston’s Flagship Hotel, reports Laura Elder in the Galveston County Daily News. The hotel suffered about $7 million in damage from Hurricane Ike last year. But Landry’s Restaurants, the current owner, has a fallback plan in case the sale doesn’t go through:
If the 225-room property at 25th Street and Seawall Boulevard doesn’t sell, Landry’s likely would demolish the hotel and develop a “pleasure pier” with amusement rides, officials say. . . .
Landry’s is pricing demolition for the hotel, built in 1965 as a show of confidence after Hurricane Carla, Jeff Cantwell, senior vice president for development, said.
Perched on a pier overlooking the Gulf, the Flagship fell into disrepair on its own after 1990, when The Flagship Hotel Ltd. took over management.
Landry’s paid the city $500,000 for the hotel in 2004, saying it planned to spend $15 million transforming the property into an entertainment plaza with amusement rides, including a roller coaster.
Landry’s attempted to move ahead, but was stymied by agreements that gave Daniel Yeh, head of The Flagship Hotel Ltd., control of the hotel until 2031.
Comment of the Day: Downtown Hilton Garden Inn Furniture Plan
“Financing? WEDGE’s principal can find the money for this project in his couch cushions. According to ArabianBusiness.com, Issam Fares is currently the 32nd richest Arab on the planet with a net worth of $2.4 Billion.” [Bernard, commenting on Downtown Wallflower: A New Hilton Garden Inn?]