Three groups bid to run Old Santa Fe Trail property
Two hopefuls are from Santa Fe, while other is from Albuquerque
Three firms have bid on the chance to lease and manage the Garrett’s Desert Inn property in the heart of Santa Fe, according to the New Mexico State Land Office.
All three are based in New Mexico — two in Santa Fe and one in Albuquerque. They include 311 Old Santa Fe LLC, Santa Fe Desert Inn and Los Poblanos Hospitality of Santa Fe LLC.
The State Land Office did not disclose the bid amounts. The request for proposals set a minimum base rent amount of $225,000 per year, a one-time signing bonus of $10,000 and 1 percent of total room revenue. A minimum bid would generate $4.5 million for The University of New Mexico over 20 years, the lease term, with two 20-year renewal options.
The bids go next for review by a panel of four Land Office employees and three outside stakeholders, including a member of a city of Santa Fe development review team, an architect and a historic preservation committee representative.
Paul Margetson, managing partner of Hotel Santa Fe, said his group, Santa Fe Desert Inn, offered 1.5 percent of the room revenue and 10 percent of any leases at the hotel. It also would keep as a tenant the Santa Fe Bite restaurant. And the group would share the hotel profits with the Land Office after it had improved the business in several years, he said.
“I’m going to renovate — ‘gut’ is not the right word — but redo the rooms and make a significant investment over there,” if the bid is successful, Margetson said Wednesday. His partners include his wife, Ashley Margetson, and the Picuris Pueblo, which is also a partner in Hotel Santa Fe.
Jay Rembe of Los Poblanos Hospitality of Santa Fe LLC, and the family that owns Los Poblanos Historic Inn & Organic Farm in Albuquerque, declined to comment on specific plans for the property if the company’s bid is successful, or on the bid itself.
“We are going to pursue something similar to Los Poblanos in Albuquerque,” Rembe said. “We just want to continue the quality of what we’re doing there and bring it to Santa Fe. We’re really excited about the property.”
His brother, Matthew Rembe, executive director of Los Poblanos in Albuquerque, said: “We’ve made a compelling final argument that we would be a good parnter, but we’ve made a proposal that really compounds the opportunity on many levels through food, vendors, tourism, in a way that is not being currently done.”
A representative of 311 Old Santa Fe LLC could not be reached to comment on its bid.
Garrett’s Desert Inn is at 311 Old Santa Fe Trail.
In December, State Land Commissioner Aubrey Dunn Jr. called off a deal with GreenTree Hospitality and Peak Hospitality two days before the lease period was to begin Jan. 1. The bidders were unable to show they could secure a $250,000 performance bond, Dunn said at the time. Bidding was reopened in February.
The 2.7-acre site came to the Land Office through a swap for 9,400 acres of state trust lands with the Cochiti Pueblo in 2016, according to the Land Office. The 62-year-old hotel has 83 guest rooms.