MIDLAND, Texas — The DoubleTree by Hilton in Downtown Midland is set to go up for sale due to inability to get the proper funding it needed to make necessary renovations to its rooms and lobby.
Previously, the hotel had asked Midland Development Corporation for $15 million to help with financing the renovations, but were turned down by MDC.
So when they went to the banks with a similar request for financing, they heard a similar message.
“We've been trying to get financing from the banks and because of the revenue that has been for the last three years, the banks with their debt ratio coverages, they didn’t think that it was a viable deal," DoubleTree Managing Partner Shafik Tejani said.
Renovations are actually a requirement for DoubleTree hotels, like the one on Wall St., and Midland’s was due for upgrades.
“Every seven to 10 years, you need to renovate all your furniture, fixtures and things like that," Tejani said. "It's been 10 years."
Without the proper finances, those upgrades can’t be made, which ultimately drove Tejani and his partners to officially list the property.
“We've gone to a commercial hotel broker, and we will be listing it next week," Tejani said. "They've got all the paperwork and they're going to go live next week.”
Tejani has helped manage the property since 2004 and will continue to operate it until the very end.
All he hopes for is that someone who knows Midland will take over.
“I would hope that the people that buy would be community driven like we are and that they help in the community," Tejani said. "I would like to see some local people buy in but that's only because I think local people in local places do more than people that are from the outside.”