A hotel property on West Broad Street in Henrico County is under new ownership, with plans to tear down part of the building and renovate the back part for another hotel.
The 6.67-acre property at 6531 W. Broad St., sandwiched between Altria Group’s corporate headquarters and a Home Depot, has been used as a hotel for 45 years. It had been the Holiday Inn-Fanny’s for three decades.
Henrico-based KM Hotels, which operates 19 hotels in five states including five properties in the Richmond area, bought the West Broad Street property in June for $4.6 million, property records show.
The new owners immediately closed the hotel, which had fallen into disrepair in recent years. The building’s sign had three names for the hotel there — Hotel I-64, Akaza Hotel of Richmond and Speco Hotels of Richmond.
“We like the site. We like this area. We’ve been eyeing this property since 2012,” said Mayur Patel, the president and chief operating officer of KM Hotels.
Plans call for tearing down the original four-story main hotel building closest to Broad Street. It opened as Holiday Inn-Fanny’s in 1974.
In its place, KM Hotels wants to construct a four-story office building housing its corporate offices, medical offices and some retail on the ground floor. Initial plans call for a 50,000-square-foot building in which the company would occupy the top floor.
“Nothing is set in stone yet,” Patel said. “We are still playing around with what we want to do with it. It may be five stories instead of four. It may be longer. It may have other things attached to it. We thought it would be a good spot for us to build our own space and have space to lease out.”
The company is in the process of filing paperwork with the state for asbestos abatement for that part of the building. The abatement needs to be done before the demolition can take place.
The seven-story tower, which was added to the rear of the property in 1980, will be completely renovated and turned into a La Quinta Inn & Suites, he said.
The 100-room La Quinta, along with about 2,500 square feet of meeting room space, should be ready in the fall of 2020, Patel said. Renovation work should begin by the end of this year.
In the far rear of the property, the company is considering putting another hotel brand there or possibly an apartment building or a storage facility.
That would be part of a second phase, he said, with no timetable in mind.
The former Holiday Inn-Fanny’s changed its name in 2005 to Crowne Plaza Richmond West.
SN Holdings LLC, the Oregon-based group of investors, bought the property in late 2012 and changed the name to Richmond Magnuson Grand Hotel and Convention Center. The moniker changed again in 2016 to the trio of names — Hotel I-64, Akaza Hotel of Richmond and Speco Hotels of Richmond.
KM Hotels had put the hotel property under contract in 2017, but issues came up and the deal never closed, Patel said. Eventually, the two companies came to terms.
Patel said he has eyed the property for years because the company has several properties in that part of Henrico.
He has been in the Richmond area since 2008, when he initially ran the company’s Hampton Inn & Suites on Glenside Drive just north of West Broad Street.
In front of that hotel, the company is building a Residence Inn by Marriott, which should open in first quarter of 2020. The site had been the home of the Skilligalee seafood restaurant, which closed in 2013.
KM Hotels also bought the former Days Inn on Dickens Road in 2014, renovated it and rebranded it in 2015 as Candlewood Suites.
The company also owns the Holiday Inn Richmond-I-64 West End on Staples Mill Road across from the Anthem offices. It has been undergoing renovation and should reopen as a Holiday Inn Express in mid-September.
“So we have a good handle on this area,” he said. “We want to stay around here.”