Skip to content

Search

Latest Stories

New York hotelier acquires Red Carpet Inn, plans to take it independent

Nearby Canada-U.S. border to remain closed until August

New York hotelier acquires Red Carpet Inn, plans to take it independent

RUDRA MANAGEMENT, LED by Jayesh Patel, recently acquired an old Red Carpet Inn in Tonawanda, New York, with plans to reposition it as an independent hotel. Those plans depend, to some extent, on reopening the nearby Canada-U.S. border, but Patel said the delay on that reopening is better than risking a resurgence in the COVID-19 pandemic.

Patel, whose Cheektowaga, New York, company already owns more than 50 hotels, acquired the hotel for $1.125 million through Gurusaheb LLC from Haripriya Inc., according to local media. Milan Patel, also with Rudra Management, helped arrange the deal.


“This has been a troubled property for probably the past year, year and a half,” Jayesh Patel said. “That's how I come across that there was somebody wanting to get rid of it and I had an appetite to purchase it.”

A return to life

Jayesh plans to perform a $300,000 renovation on the 44-room hotel before renaming it the Route 62 Motel, operating as an independent hotel.

“Being in a tourist market, independents, in my opinion, are much more popular if it's a nicely renovated property,” he said. “Rather than a budget brand, I think independents are more appealing to the guests in today's time.”

Rudra Management has six other independent hotels in that market, Jayesh said. He thinks that is the best way to revitalize existing properties.

“In today's time, there are a lot of old buildings and there is an opportunity to bring it back to life,” Jayesh said. “Bring it back to the life with the proper renovation rather than having a budget motel and confuse the guests because many of the budget hotel brands, they're very inconsistent. I would rather build up an independent’s name and maintain the reputation of the place by providing a nice, comfortable motel.”

The refurbishment of the Red Carpet Inn should be finished by August, Jayesh said.

Harish and Bhakti Patel of Haripriya Inc. owned the Red Carpet for more than 20 years as well as a Days Inn before selling all their properties in the town and moved to Texas.

Waiting for the reopening

Cheektowaga is near Niagara Falls, New York, and the Canadian border, which has remained closed to tourists for 16 months during the pandemic. The administration of President Biden recently announced that the border would remain closed until Aug. 21, according to Reuters, despite Canada’s announcement that it would start allowing in fully vaccinated U.S. visitors on Aug. 9 for non-essential travel.

“It is very important to have the Canadian border open,” he said. “Buffalo, New York, is the closest destination and we always see a great amount of action from Canadian travelers visiting western New York regularly. So, opening the border is very crucial.”

The administration’s decision to delay the border’s opening drew criticism from the U.S. Travel Association. USTA is part of a coalition of 24 trade organizations that recently called for an end to all travel restrictions worldwide.

“Every day that our borders remain closed further delays our industry’s recovery, causing greater damage to the millions of Americans whose livelihoods depend on travel. The continued closure of the Canadian border alone costs the U.S. economy $1.5 billion in potential travel exports each month,” said Tori Emerson Barnes, USTA’s executive vice president of public affairs and policy. “Given the strong vaccination rates on both sides of the border, it is possible to safely reopen to our No. 1 source market for international visitors. Land travel accounted for more than half of all overnight visits to the U.S. by Canadians pre-pandemic, generating significant travel exports that support vital American jobs.”

However, Jayesh said he understands the government’s caution.

“I think it's necessary to delay it right now, because we've gone through this third or fourth wave [of COVID-19],” he said. “The cases are rising again in New York. I’d rather see it delayed than having it open and all of a sudden, we go through a similar event to what took place last year when the first COVID cases are found.”

More for you

Trump reviewing 55 million us visas
Getty Images

Trump reviewing 55 million visas

Summary:

  • The Trump administration says it is reviewing more than 55 million visa holders.
  • Reviews cover a wide range of visas for law enforcement and overstay violations.
  • The administration also suspended worker visas for foreign commercial truck drivers.

THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.

Keep ReadingShow less
Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Spark Acquires Home2 Suites Wayne, New Jersey
Photo Credit: Hunter Hotels

Spark acquires Wayne, N.J., Home2 Suites

Summary:

  • Spark acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey.
  • Hunter Hotel Advisors facilitated the transaction with DC Hospitality Group affiliates.
  • The 2020-built hotel is near William Paterson University and less than 20 miles from Manhattan.

SPARK GHC RECENTLY acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey, from affiliates of DC Hospitality Group. Hunter Hotel Advisors facilitated the deal for an undisclosed amount.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less