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Internet-Inns.com Puts Oklahoma City Hotel Projects on Hold

By Jon Denton, The Daily Oklahoman
Knight Ridder/Tribune Business News 

Jul. 20--The nation's economic doldrums have put plans to build two Bricktown inns on hold, developer David Littlefield said Thursday. 

The chief executive of Internet-Inns.com has delayed a decision on the project until fall. Several factors -- falling hotel occupancy rates, a troubled stock market, cautious investors, other hotel prospects interested in downtown Oklahoma City -- give him reason for concern, he said. 

Last March, Littlefield, an Oklahoma City businessman, said he was lining up $10 million for the Bricktown properties. He was talking with several investors interested in hotels for business travelers and tourists. 

He proposed an eight-story, 120-unit Santa Fe Plaza Hotel adjacent to the old Santa Fe train station. He also proposed a 50-suite Corporate Plaza Hotel east of the train station and adjacent to Zio's Italian restaurant. 

But neither property has what conference planners say downtown Oklahoma City desperately needs -- more convention hotels with big guest rooms, group meeting rooms, large restaurants and expansive lobbies. 

Last week, two developers stepped forward with hotel projects closer to the convention model desired. Both propose building on the southwest corner of E.K. Gaylord Boulevard and Reno Avenue. 

While it's not in Bricktown, the corner is within walking distance of the major downtown attractions. In minutes, visitors can reach the Bricktown restaurants, shops and ballpark; the Renaissance and Westin hotels and the nearby Myriad Convention Center; the Amtrak station, new sports arena, library, arts center and refurbished Civic Center Music Hall. 

John Q. Hammons, who built the $38 million Renaissance Hotel across from the Myriad, wants to put a Courtyard by Marriott at the intersection. Another group, PEC Enterprises Inc., told city planners it wants to build a suite hotel there. 

Meanwhile, smaller, high-tech business hotels are only getting lukewarm attention from investors, Littlefield said. They see a 5 percent to 6 percent drop in national hotel occupancy rates, a reflection of the slowing economy. 

InternetInns.com offers in-room computers with high-speed Internet access. It has interactive cable TV with optional online access and video conferencing centers in the hotel. 

Hotel adviser Greg Crown of PKF Consulting in Dallas puts InternetInns.com in an investment category all its own. 

"I would say several things are happening here: The economy is headed south... the fact that InternetInns is a new concept... and it is a different property than one that is proven to be successful downtown," Crown said. 

His best advice for InternetInns.com is to enter a dependable market with a good chance of success. 

While Littlefield says downtown Oklahoma City is unable to meet those criteria for InternetInns, at least at the moment, he does not rule out nearby Edmond. He's shopping there for an established property he can convert.

"We want to make sure the location we go into is the right kind of location for this kind of hotel," Littlefield said. 

That's because his high-tech hotel concept is in the launch phase. So far, the company has two properties, a new one in Pryor and a retrofitted Microtel in McAlester. 

Both hotels have rising occupancy rates, Littlefield said. But what the company needs is an established hotel in a major metropolitan area, retrofitted to an InternetInns concept. 

He has one in sight. While he declined to identify the property he's negotiating with, he said he's eager to get on with the plan. 

"When you can showcase a conversion and bring people into this state to see that, it's going to help them decide. It's very important for our business plan to help them see that," Littlefield said. 

At the same time, he's pushing an international rollout for his concept. He finds international investors most interested in converting resort properties and high-traffic business hotels into high-tech ventures. He's talking with developers about projects in Mexico, Egypt and Canada, he said. 

"This is pretty big, which is why we are focused on this," he said. "When you have prospects for this much international development, it's a wonderful jump-start." 

-----To see more of The Daily Oklahoman, or to subscribe to the newspaper, go to http://www.oklahoman.com 

(c) 2001, The Daily Oklahoman. Distributed by Knight Ridder/Tribune Business News. 


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