An historic Texas hotel now in ruins that drew celebrities and visitors to its mineral waters decades ago could once again generate millions of dollars in profits after renovations.
The Mineral Wells Index reported a study shows the Baker Hotel, about 50 miles west of Fort Worth, could realize $2.1 million in net operating profit if renovated.
The performance study, compiled by Houston-based PKF Consulting USA for Chad Patton and Laird Fairchild of Baker Hotel Development Partners LLC, also found that in 10 years the hotel's annual net profits could reach $5 million. The renovation plans for the 14-story Baker hotel call for its more than 400 guest rooms to be converted to 157, and the transformation of the hotel into a destination resort and spa.
The study, which compared the Baker Hotel to six other comparable Texas resorts, found that a renovated Baker Hotel in its first full year of operation could see $12.5 million in gross revenues, based on room rentals, food and beverage sales, spa revenue, rentals and special events, and other income.
"The conclusions of the market analysis exceeded our expectations," Patton told the newspaper. "Most encouraging was the forecasted occupancy, revenue forecasted per room and the suggested average daily rate. It validated our belief that when we revive the hotel, it has a great chance of being a viable and successful project."
The renovation plans also include 23,750 square feet of meeting space and a 4,875-square-foot ballroom. There will also be a restaurant, coffee shop, and banquet kitchen. A spa, swimming pool and fitness center are among health amenities.
Patton noted that the study did not focus on the financing aspects of the reconstruction project. It also did not factor in costs associated with environmental issues, such as the removal of asbestos and lead paint.
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The 14-story Baker Hotel was built in 1929, and it lured film and televisions stars--such as Judy Garland, Clark Gable and Roy Rogers--to its fabled, curative mineral waters. It closed in 1972 and has since fallen into disrepair. Parts of the building are crumbling, and rooms have been trashed and windows broken.
