The Real Deal

By Lagniappe staff

It looks like the Riverview Plaza and Battle House Hotel will soon have some company along Royal Street in downtown Mobile, as Hampton Inn plans to build a 155-room hotel between Government and Dauphin Streets.

Though no one could officially confirm the hotel is coming, the story was corroborated by several city officials. One also said Leon Maisel, president and CEO of the Mobile Bay Convention and Visitors Bureau announced the hotel’s interest in locating downtown during a luncheon last week. Maisel was out of town and could not be reached prior to publication of this story.

The hotel will ostensibly be built on the west side of Royal Street, just north of the building occupied by Veet’s nightclub. Sources suggested the company would build a new structure, possibly in a vacant lot in that area, and might also incorporate the façade of an existing building.

Officials with Hampton Inn, which is part of the Hilton family of hotels, could not confirm their interest in building in downtown Mobile prior to publication.

The addition of the hotel would help toward alleviating a concern that has plagued the city’s efforts to land more convention business – namely a shortage of hotel space near the convention center. The Hampton Inn would also provide a mid-level alternative to the Riverview and Battle House, both of which will be higher-end hotels.

Other hotels in the downtown area include the Radisson Admiral Semmes and the Lafayette Plaza Hotel, which is currently working to establish itself as a Holiday Inn affiliate.

No word yet on when construction will begin.

Mobile’s ship coming in

Recent news of the relocation of International Shipholding, Inc. corporate offices to the RSA Tower has sent a wave of excitement through Mobile and realtors are among the giddiest residents.

“We’re all tickled to death,” said Sue Winter, General Manager of Roberts Brothers Realty. “It’s very exciting for all of us.”

Winter thinks the move is a good sign for the local market. “Anytime you have a company with that standing, something of that kind of quality come to town, it can only be good for everyone,” said Winter. International Shipholding will become Mobile’s only corporation listed on the New York Stock Exchange.

“This will create a ripple effect throughout the community,” Winter said. “It will reach out far beyond the transaction point to all types of other businesses.” She can foresee a bounce in commercial property as well once the economic effect makes the rounds.

The company decided to move operations from New Orleans following the damage wrought by Hurricane Katrina and Mobile provided the next closest alternative, along with a treasure chest of incentives offered by Mobile civic leaders.

Within the next two years, its touted the shipping conglomerate will bring 150 new jobs to town. Winter sees that as a possibility of 150 new homes to be sold and not all of those will necessarily be adjacent to the offices. “These people are coming from New Orleans and they’re used to being in a bigger metropolitan area,” said Winter. “These are people who are used to much longer commutes than perhaps Mobilians are so they wouldn’t think as much about buying a house in West Mobile or Baldwin County.”

Cautious optimism might describe the attitude of others. Jeff Newman, Executive Vice President of the Mobile Area Association of Realtors thinks it would be hard to improve the local situation. “Our market for homes $150,000 and on down is on fire right now,” said Newman. “But with the range of upper level salaries this may bring in, it could boost our sales of upper-priced homes.”

Newman thinks the new residents might be pleasantly surprised by what they find. “Our median home price is 70 percent of the national median,” he explained. “When people are coming here from other areas of the country, they can’t believe what they can get for the dollar. These folks are going to be pleased.”

Like Winter, Newman can see the additional money in the Mobile economy having an effect on commercial properties. “Sure, once you get these people in town,” said Newman, “get them spending money and using services, people shopping and so forth, it’ll have to effect things.”

Newman reiterated Winter’s position about the home sales being spread around the area. “These people that are coming from major metropolitan areas where the commute times are an hour or more, they’re not going to think anything about driving a half an hour to work, which is what our average commute time is here in Mobile.”

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