Hotel developer to build on VA site
Dual-branded Hilton units will give boost to Medical Center
A Houston hotelier has struck a deal to build a 300-room hotel on the campus of the Michael E. DeBakey Veterans Affairs Medical Center.
American Liberty Hospitality, which is expected to hold a private groundbreaking ceremony Thursday morning, will develop, own and operate what will be a dual-branded Hilton property at the southwest corner of Almeda Road and Holcombe Boulevard.
The developer was able to at
tain the land through a Department of Veterans Affairs program in which the VA leases its underutilized real estate to private sector entities for up to 75 years. The so-called Enhanced-Use Lease Program aims to expand services to veterans that would not otherwise be available on medical center campuses, according to program information online. Most of the services to veterans are in the form of housing.
“This was a great way to deliver new product, which is something
the Texas Medical Center market sorely needs,” said Nick Massad III, vice president of development for the hospitality group.
Amelang Partners, a local real estate company that owns a retail center on the VA campus, currently holds the ground lease. American Liberty is essentially subleasing a 2.5-acre parcel from Amelang for the hotel. American Liberty representatives declined to discuss the terms of the ground lease or cost of the hotel project.
Since the VA is exempt from paying property taxes, the hotelier will pay the taxes on the
above-ground improvements, but the land remains tax exempt.
Designed by MCS Architects, the 10-story property will combine a midpriced, 157-room Hilton Garden Inn and a 143-room Home2 Suites. A new 500-car parking garage will serve the hotel. The VA Medical Center will have access to a portion of it, as well. The hotel will include a fullservice restaurant and bar, fitness center, outdoor pool and meeting space.
The history of the Veterans Administration, the Houston campus and Michael DeBakey, the prominent heart surgeon for which the hospital is named, will
be featured on an “honor wall” in the hotel.
American Liberty’s local portfolio of Hilton-branded hotels include the Embassy Suites Houston Downtown, the dual-branded Hampton Inn & Homewood Suites Houston Downtown, Sam Houston Hotel Curio by Hilton Houston Downtown and Hilton Garden Inns in the Galleria and Energy Corridor areas.
Nick Massad Jr., American Liberty’s CEO, said the brands — two of Hiltons most popular — will serve all medical center visitors, from business travelers to patients and families. The Hilton Garden Inn will appeal to individual
and group travelers while Home2 Suites will attract guests seeking extended stays.
He said the location is also positioned in the path of growth. The property is across Almeda from the TMC Innovation Institute, which offers programs to assist health care startups. It is also just east of the proposed TMC3, a 37-acre biomedical research campus.
“A lot of things happening in this direction,” Massad said. “We feel like we’re in the path of that growth.”