The beleaguered Wyndham Hotel, Springfield’s tallest structure which turns 50 years old in 2024, will go up for auction beginning April 15.
The opening bid at TenX is listed at $3 million.
An $18.75 million incentive package for the hotel endorsed by the Community Economic Development Commission had been scheduled to be taken up the city council but was tabled just after the April 4 mayoral election.
No major votes on the 30-floor Wyndham have come up under Mayor Misty Buscher’s administration, although officials verified that they periodically had been in contact with the ownership group.
Spokeswoman Haley Wilson said the city did not have any additional details regarding the hotel’s auction other than what was online.
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Under the most current plan, the Wyndham, which is owned by Al Rajabi of the Sky Capital Group from San Antonio, Texas, could operate as a Delta by Marriott with 250 hotel rooms and 200 apartments. Currently, it has 369 hotel rooms with 27 apartments and that model could also be kept.
The 200 apartments is the most allowed under current zoning.
An overhaul of the property has been pegged at just short of $60 million.
Ryan Bodine, the Senior Vice President of NewGen Advisory which has been helping Rajabi with the auction, said it’s time for a change in regard to ownership.
“While the owner is well capitalized and is focused on other developments and acquisitions, he has concluded that the hotel is ready for new ownership,” Bodine said.
The sale of the hotel on Ten-X’s marketing platform “will enable us to find the buyer most suitable for this historic property,” Bodine added.
Rajabi bought the hotel in 2019 in a foreclosure sale. It was then valued at around $11 million.
The Wyndham became a campaign issue last year over the forgiveness of a $243,000 charge on a 2021 City Water, Light & Power bill.
Rajabi contended he paid the city $1.5 million “to make (it) whole.”
Buscher told the SJ-R last year that it was the city that needed to be made whole.
“If you owed a quarter of a million, and then wanted $20 million more (in incentives), I would ask for the quarter of a million back,” Buscher said. “It’s still the same person who received debt forgiveness and then wants additional funding from the city. Ultimately, it’s all the taxpayers’ money.”
Asked Tuesday if she would like to see local ownership of the hotel, Buscher said the city would “welcome anyone who would invest in it and want to make it a good operating hotel. We don’t want to turn our backs on anyone if they’re from out of town or in town.”
The downtown hotel began as the Forum 30 in 1974. It was renamed the Hilton Tower in 1980 but became known simply as the Springfield Hilton. The change to Hilton, including new signage, took place in 1998. The hotel switched its brand to Wyndham in late 2015.
Contact Steven Spearie: 217-622-1788; [email protected]; X, twitter.com/@StevenSpearie.
This article originally appeared on State Journal-Register: The 50-year-old Wyndham Hotel in Springfield will go up for auction
Amanda Smith is a dedicated U.S. correspondent with a passion for uncovering the stories that shape the nation. With a background in political science, she provides in-depth analysis and insightful commentary on domestic affairs, ensuring readers are well-informed about the latest developments across the United States.
