Lucas Energy ends year on a high note A tumultuous 2015 closed with some M&A for this energy company. Suzanne Edwards, 8 JANUARY 8-14, 2016 • VOL. 47, NO. 35 • $6.00

cover story oil slump sparks

storm among hotels 12

Houston’s top hotels 15

Health tech Retail Real estate Closing© American time City for Business Journals - Not for commercial use Rice Village pub After almost 16 years, a Baker Street Pub location has shuttered. Olivia pulsinelli, 7

Residential Center to upgrade TMC Developer grabs 80 Harvest Green Back Page AT&T is bringing a new health acres of prime land care technology program — one of blooms first homes only six in the world. Despite a down economy and no Bill BaileY switches off JOe Martin, 11 Houston’s first agrihood is pollinated tenants, an industrial project moves with “ag-menities.” Paul TakaHashi, 6 forward. Cara Smith, 10 his Rodeo mic 31

Breaking news online r HoustonBusinessJournal.com On smartphones and tablets HoustonBusinessJournal.com/apps Daily email updates L HoustonBusinessJournal.com/email 14 HOUSTON Business JOURNAL january 8-14, 2016

cover story Projects to watch: branded hotels, totaling 325 rooms. A Corp. (NYSE: HHC) and will feature 15,000 New construction restaurant is planned for the ground floor, and square feet of meeting space and a 150-seat Renovations parking will be on the upper levels, according restaurant dubbed Current. It will be the fifth Marriott to Colliers. The project is scheduled to Westin in the Houston area. The architect was Houston Marquis break ground in late 2016, and construction a partnership between Boston-based Elkus Airport Houston’s second is expected to be complete by mid-2018, Manfredi Architects and the Houston office of Marriott convention according to Colliers. HarDam Hotels LLC Gensler. Dallas-based Waldrop+Nichols Studio The hotel President James Guillory Jr. of Houston will LLP was the interior designer. Airport Marriott — the Marriott develop the project. at George Bush Marquis — broke Hotel ZaZa International will ground in April Embassy Memorial City hold its grand 2014 and is on Suites The Hotel ZaZa Memorial re-opening and ribbon-cutting ceremony on track to be finished this year. The 1,000-room Woodlands City broke ground Jan. 12. The hotel just finished its $53 million hotel will be connected to the George R. The 205-room in October at the renovation of the 573-room hotel. The revamp Brown Convention Center and is supposed Embassy Suites The intersection of Interstate included the addtion of a new restaurant, to be instrumental in helping the Bayou City Woodlands held 10 and Bunker Hill. The called Flight, and lounge, called MClub. compete for conventions. its grand opening 460,008-square-foot, Dallas-based Balfour Beatty Construction and ribbon cutting on Jan. 7. It is in Hughes 17-story boutique hotel DoubleTree and Florida-based Welbro Building Landing in The Woodlands, which is being and luxury residential Hotel & Suites Houston Corporation Inc. are the general contractors developed by Dallas-based The Howard tower is projected to open in summer In , the DoubleTree Hotel & on the project, Houston-based Ensight Hughes Corp. (NYSE: HHC). Arch-Con was the 2017. The developers are Houston-based Suites Houston will receive a significant Haynes Whaley Inc. is the structural general contractor for the Embassy Suites. MetroNational Corp. and Dallas-based Z upgrade. The multimillion-dollar renovation engineer, Houston-based Morris Architects Resorts LLC; the architect is Houston-based will add almost 100 rooms to the hotel and designed the hotel, and Houston-based Rida Aloft’s Kirksey Architecture and Anslow Bryant new common spaces that will include a Development Corp. is the developer. Houston invasion Construction is the general contractor. lobby, restaurant and lounge designed by The project includes a -shaped lazy Connecticut-based Starwood Hotels & Resorts The hotel will have 159 rooms and 10,000 Houston-based Paradigm Design Group. The river on the sixth-floor terrace of the hotel. Worldwide Inc. (NYSE: HOT) plans to add four square feet of event and meeting spaces. renovation is expected to be complete in The hotel should be fully operational for Super Aloft Hotels in the Houston area within three Amenities include an outdoor pool with a bar summer 2016. Bowl 51. years. Houston currently has an Aloft in the and cabanas, the brand’s ZaSpa, a fine dining Galleria area. restaurant and a nightlife-oriented lounge. South Hotel Aloft Houston Downtown is at 820 Fannin Four of the top floors will be reserved for 130 Shore Alessandra in the historic Stowers Furniture Building. The apartment units. Harbour Development is building will be redeveloped into a 165-room Resort and underway at Hotel hotel with 2,000 square feet of meeting The Conference Alessandra in space. It is expected to open in June 2016. Post Oak Center , The Aloft Shenandoah will be directly Landry’s Inc. broke In December, which will anchor across Interstate 45 from The Woodlands, ground in April 2015 on Galveston-based GreenStreet, a mixed- and it will open in January 2018. The $15 The Post Oak, a major American National Insurance Co., the owner use development million, 125-room hotel is expected to start mixed-use project in of the South Shore Harbour Resort and formerly known as the construction in the fourth quarter of 2016. It Uptown. The 10-acre Conference Center in League City, announced Houston Pavilions. The 21-story, 225-room will feature an outdoor pool with cabanas, a project will be 38 stories it would invest $15 million to upgrade the hotel hotel is expected to be complete in late 2016, state-of-the-art fitness center, flexible meeting and include 250 luxury and conference space with a contemporary just in time for the Super Bowl. space with the latest technologies, and a hotel rooms. look. The resort hotel and 25,000-square-foot The developers are Houston-based restaurant and bar. conference center will remain open during Midway Cos. and Houston-based Lionstone A 120-room Aloft Hotel is planned in Holiday Inn Flagship renovation, which is slated to be complete in Investments. San Francisco-based Gensler is Houston-based Johnson Development Corp.’s in former Savoy Hotel the second quarter of 2016. the architect. Hoar Construction is the general master-planned community Imperial Sugar The former Savoy Hotel at 1616 Main St. in The management company is 1859 Historic contractor. Houston-based Valencia Group Land, at Highway 6 and Highway 90A. downtown Houston was recently redeveloped Hotels, the project manager is Boston-based is partnering on the project and will operate Aloft Houston West will offer 117 rooms into a 215-room Holiday Inn. The Savoy T.R. Engel Group, Dallas-based Flick-Mars is the the hotel for owner Midway. Midway and and 2,000 square feet of meeting facilities. It used to be a Houston landmark but has interior designer and Gilbane is the general Valencia previously partnered on Hotel Sorella will be near the intersection of Interstate 10 been abandoned for years. After a two- contractor. CityCentre. and Boulevard, just east of year conversion, the new hotel opened in “League City is only 52 percent built out. Barker Cypress Road and will open in March December 2015. The developer is Rahul Bijlani. There’s still a lot of room for growth and Texas Medical 2017. opportunity and we hope to be an exciting Center hotels Hyatt Doubles up part of that growth,” said Roy Green, general The has become a hub The Westin in the Galleria manager of South Shore Harbour Resort. “And for new hotel developments. One hotel in the The A 325-room Hyatt Regency Hotel Houston to be a mile from the and works involves Houston-based Medical Center Woodlands Galleria opened in October 2015. The hotel halfway between Houston and Galveston — we Fannin OST Investments LP, which recently © American CityThe Westin Business The Journalswas developed - Not by for Atlanta-based commercial Songy use couldn’t be in a better area.” bought 7329 Fannin and 1803 Old Spanish Woodlands is Highroads LLC. Dallas-based Ambridge The hotel is benefitting from the nearby Trail from Houston’s Dixon Financial Services expected to be Hospitality will manage the hotel. Adjacent petrochemical boom happening along the Ltd. Tom Condon Jr. with Colliers’ Woodlands complete in February to the Hyatt Regency, the Hyatt Place Gulf Coast. office represented the buyer, and Louis 2016 in Waterway Square. The 302-room Galleria is slated to open in March 2016. The “The bulk of our business comes from Smith with Houston-based SRC Properties hotel is being developed by Connecticut- developer is Washington, D.C.-based The Texas and Houston from manufacturing to represented the seller. The buyer plans to based Starwood Hotels & Resorts Worldwide Carlyle Group. petrochemical to law firms doing retreats. We redevelop the 1.3-acre site into two nationally Inc. (NYSE: HOT) and The Howard Hughes do some medical business, too,” Green added.

Houston’s Booziest Hotels Hotel booze Sales tax from booze Some of Houston’s top-performing hotels also have top- Hilton Americas-Houston $7.92 million $530,932 performing bars. HBJ analyzed the monthly mixed-beverage Hotel ZaZa $5.09 million $341,048 tax receipts from the Texas Comptroller’s office for the The Houstonian $4.99 million $334,125 top 25 hotels on The List (see page 15) to see which ones The San Luis Hotel $3.76 million $252,118 had the highest alcohol sales between November 2014 The Woodlands Waterway Marriott $3.09 million $207,140 and October 2015. A mixed-beverage tax of 6.7 percent is Four Seasons Hotel Houston $2.73 million $182,597 applied to the sale of all alcoholic beverages and mixers Moody Gardens Hotel $2.66 million $178,532 intended for use in alcoholic beverages. Beer and wine sold Hotel Sorella $2.36 million $158,229 for consumption offsite is not subject to the mixed beverage St. Regis Houston $2.18 million $145,969 tax.