firstnational
Lexington, KY - If all goes as planned, the historic 15-story First National Bank Building on Main Street in downtown Lexington may someday enjoy a new life as a 21c Museum Hotel.
Steve Wilson, CEO of 21c Museum Hotels, announced today the company intends to engage in a major adaptive reuse project directly across Main Street from the proposed Centrepointe hotel/condo/retail complex, transforming the First National Bank building and the three-story building adjacent to it into a boutique hotel that is expected to employ 150.
21c, selected two years in a row in Condé Nast Traveler’s Readers’ Choice Awards as the top hotel in the United States and No. 6 hotel in the world, is known for environments that offer an innovative blend of hospitality, thoughtful design, culinary creativity, and rotating exhibitions of world class contemporary art by emerging and internationally acclaimed artists.
“We have looked at Lexington for a number of years and feel that this is the right time to build a 21c Museum Hotel in this city,” Wilson said during a morning press conference at the FithThird Pavilion one block west of the future site of the hotel. “Lexington has entered a new era with visionary leadership. The city’s historic downtown and the Rupp District represent remarkably inspired imagination and promise for Lexington and the entire state. They strengthen Lexington’s position as one of the state’s primary growth engines.”
The announcement comes as the economy appears to be emerging from recession. Lexington hotel room revenues have risen 9 percent in the last four months, according to Lexington Convention and Visitor’s Bureau President Jim Browder. Occupancy is up 4 percent for the period. Rates have increased 3.7 percent, according to Browder.
Still, the average occupancy rate for Lexington hotels from February 2011- February 2012 was a lukewarm 58.9 percent with room rates averaging $86.
A reservation clerk at the Louisville 21c hotel contacted by Business Lexington said tonight’s rate for a “luxury king room with a view” is $289. The clerk stated that 21c rates typically run in the $200-$300 range.
Wilson stressed that the $38 million project depends on city and state approval of financing incentives.
According to a press release from the office of Mayor Jim Gray, whose family company, Gray Construction, provided construction management services for the Louisville 21c, the hotel company is asking the city to:
▪ Facilitate a $6 million loan through the HUD Section 108 Loan program, a federal program designed to support projects that create new permanent jobs for low- and moderate-income individuals.
▪ Support a $2 million Urban Development Action Grant (UDAG) loan, another federal program designed for projects like the 21c Museum Hotel. The city has used UDAG loans to support other downtown rehabilitation projects, including Victorian Square.
▪ Create a tax increment financing district to fund public infrastructure.
The company will also apply for traditional state incentive programs, including historic tax credits.
21c has new properties under construction in Bentonville, Arkansas, and Cincinnati, Ohio.