Business & Tech

Pasadena considering hotel deal for convention center

Proposed deal draws mixed reviews as city looks to find new ways to increase tourism to the city

PASADENA, TX -- The Pasadena Second Century Corporation, which is responsible for the city's economic development, recently approved plans to issue a request for proposal for a new hotel to be built at the convention center.

The corporation discussed the proposal during an Oct. 17 public hearing, which drew mixed reaction from area residents and businesses.

According to a report from the Pasadena Citizen, local resident Larry Peacock told board members he opposed the proposal.

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"I have been talking to many people around Pasadena about this, probably between 30 to 40 people, and most don't understand why we want to build a hotel out there. A lot of people don't want to commit that
kind of money and are very much against this," Peacock said. "A lot of people don't want this hotel out there at all."

The recently approved corporation budget includes $5 million in improvements to the convention center, as well as $6 million to enclose the existing rodeo arena and add air conditioning, and $3 million in funding for the proposed convention center hotel project.

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Danny Patel, who owns the Palace Suites Motel on Spencer Highway, told the Pasadena Citizen he was optimistic about the project.

"I think it could be a good thing for my business," Patel said. "If the convention center hotel brings more overnight visitors to the city it could mean increased sales for other hotels if there's an overflow
from large events. Many people go to downtown Houston for events. But, if Pasadena could offer a convention center venue with a nice hotel some of those groups might hold their events here, which would be good news
for everyone."

According to reports released by the Texas Comptroller of Public Accounts, hotel room revenues for Pasadena hotels decreased last year, going from $12,855,000 in 2014 to $12,739,000 in 2015.

Occupancy rates also fell, going from 71.4 percent in 2014 to 67.9 percent in 2015.

In addition the number of hotel rooms sold decreased from 199,300 in 2014 to 190,070 in 2015.

"It could be a good thing for other hotels or it could be a bad thing," Regina Pippins,Director of Regional Sales for the Fairfield Inn in Pasadena told the Citizen. "It depends on whether they are prepared and can bring in more events and draw out-of-town visitors to the city."

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