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: Don’t Tear Down That Restaurant!
“A restaurant is a pretty good highest and best use for land in the loop. Look at the projects involving buying a restaurant and knocking it down to build. Little Woodrow’s = Empty lot no activity. The State Grille = Empty lot no activity. Nit Noi in Rice Village = Empty lot no activity. Am i missing any?? . . . Did the Stables on S. Main become anything?” [JPSivco, commenting on Just Couldn’t Say Goodbye: Otto’s, Back from the Edge of the Market]