N.Y. businessman buys Prince Charles Hotel
Standing in front of a Christmas tree, John Chen scanned the lobby of the Prince Charles Hotel.
The lobby, the two brass bell carts, a four-slot toaster in the back office, as well as 83 rooms and their contents, 168 parking spaces and 3.32 acres, were his for $1.9 million. "I'm trying to comprehend how much labor, hard work was spent here," Chen said. "But this is not about the past. It is about the future."
Chen outbid eight other parties Tuesday to buy the 82-year-old hotel in downtown Fayetteville.
It is Chen's first hotel. He manages and sells commercial retail and residential space in Flushing, in the Queens borough of New York. His company is Hopetel LLC.
"We know how to bring in good tenants, residents," he said.
Chen, who turned 49 last week, has no immediate plans for the Prince Charles. He said his first order of business will be to listen to the community's wishes for the hotel. He also would like to lease the restaurant space in the hotel.
"Anything we do should be a plus," he said. "We want to add value."
He also wants to see value and convenience throughout the downtown. He said one of the first things downtown Fayetteville needs is a convenience store and a market.
Hotel operations will continue under the current management until Chen closes on the property. The deadline to close is Jan. 10. Whether the hotel would remain open past that date was not clear Tuesday.
Tranzon, a real estate auction company, sold the hotel at auction Tuesday for owner Zions National Bank of Utah. The bank bought the hotel at auction in October for $2.5 million. The hotel's former owner, R.K. Properties of Rockville, Md., owed the bank about $2.5 million but stopped making mortgage payments last fall and filed for bankruptcy in April.
Tranzon's fee for the auction was 10 percent, bringing the final price to $2.09 million.
Tranzon did not release the names of the bidders. Local developer Joe Riddle was one of the last to register, but he did not participate in the auction.
Employees of Tranzon worked the bidders hard, moving from table to table in a first-floor conference room. The auction started with sealed bids, setting the opening price at $1.8million.
Auctioneer David Wingfield kept prompting people to raise their bid.
"It's 1.9 million, I'm looking for 1.95. I can go on all day long," he said seven minutes into the auction.
Tranzon officials made a final sweep of the room. Several bidders waved them away, indicating they were not interested in upping the price.
At 11:31, Wingfield declared the bidding over.
A relieved Chen opened his eyes and smiled. For most of the auction he sat silently, as if he were meditating. "I did that to try and calm myself down," he said. "I practice yoga."
Chen takes over a hotel that many believe will require an expensive retrofit.
One bidder, who declined to be identified, said he spent the night at the hotel. It took him 15 minutes to check in Monday night, and when he awoke Tuesday there was no hot water.
Chen stayed at the Prince Charles two days before buying it.
Potential bidders who toured the hotel Monday said retrofitting historic hotels is expensive. One person estimated it would cost, at minimum, between $6,000 and $7,000 per room. Most of the money would go to update bathrooms.
Chen said he did not know how much money he will commit to the project.
He is prepared to allocate a substantial amount of time. He said he wants to buy a home in Fayetteville and split time between here and New York.
"I like the weather," he said.
Chen said he learned of the sale through an Internet solicitation. He said he researched the hotel and Fayetteville using Google.
Suzanne Pennink of Coldwell Bankers United Realty helped advise Chen on the purchase. He initially contacted her regarding the 300 Hay Street project. Pennink is the agent for the retail and residential space there.
Pennink said Chen is "very sincere and looking for opportunity."
"What's great about this country is it is a land of opportunity," said Chen, who came to the United States from Taiwan in 1983. "This is the best country worldwide for opportunity."
Business editor Don Worthington can be reached at worthingtond@fayobserver.com or 486-3511.