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Hay Creek’s specialty pays off with 4 deals

Restoration specialist Hay Creek Hotels and Restaurants, Exeter, New Hampshire, has added four management contracts, expanding its portfolio to 34 hotels.

Three of the projects are restorations, including The Stonebreaker in Fayetteville, Arkansas; the Wilbur Mansion in Bethlehem, Pennsylvania; and the Lodge Schroon Lake in the Adirondack Region in Schroon Lake, New York.

Horizon hotel lobby rendering

The fourth hotel, the new development Horizon Hotel in Flushing Queens, New York, is a 202-room property with 150 residential condominiums set to open in 2025. Hay Creek will work with interior design firm Stonehill Taylor and New Land Development on the concept.

None of these deals included an investment or upfront discount in the form of key money, Norman MacLeod, founder and president of Hay Creek Hotels and Restaurants, told HOTELS on Thursday. “What the deals did include was the commitment of direct corporate resources for technical services including design,” he said. “Our development team collaborates directly with the architect, interior design, and branding teams to concept and position each hotel. Our depth of experience in this niche was very beneficial in securing each project.”

MacLeod added that there is a balance of retaining the historic elements of the building while infusing current design and guest experience trends. “The charm of an historic building is always appealing, but its restoration has to relate to modern expectations in interior design, amenities and especially the restaurant and bar experience,” he said.

“Our development team collaborates directly with the architect, interior design, and branding teams to concept and position each hotel. Our depth of experience in this niche was very beneficial in securing each project.” – Norman MacLeod

The Stonebreaker is a complete restoration project of the Pratt Place Inn & Barn and is scheduled to break ground in late July. Hay Creek is collaborating with Specialized Real Estate Group on the 63-room concept, positioning and design of the hotel and its membership club and will operate the property upon completion in March 2024.

Hay Creek, a subsidiary of Denver, Colorado-based Victory Hotel Partners, will collaborate with Noble Investments/Family on the historic, nine-room Wilbur Mansion restoration project that will include an addition of a 225-person capacity, new build event space. Operations are scheduled to return late summer/early fall 2022.

Hay Creek will work in collaboration with Spring City Development on the historic restoration of the 121-room Lodge at Schroon Lake with construction scheduled to begin in July. It will include future cabin expansion, glamping sites and a planned dock with F&B/bar facility set to open by July 2023.

Exterior of the Wilbur Mansion in Bethlehem, Pennsylvania

When asked if renovation/repositioning opportunities are the best sources of deals, especially considering the price of new development, MacLeod said in some cases, “yes, but due to the unique nature of historic restoration, each project is dependent on market dynamics and ultimately the total development cost. We choose our projects very carefully to ensure the investment is sound and the property is positioned for financial success.”

On the performance front, MacLeod said the outlook for Hay Creek’s portfolio is strong. “In many markets we are benefitting from the increase in demand from the drive-to-leisure segment. Room rates have increased as a result, in some instances significantly.”

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