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Hotel Owners buy former Ford Lot

1/9/2008

Hotel owners buy former Ford lot

By Matt Sheley

Daily News staff

            A familiar duo has bought the former Newport Ford property in Middletown.

            Developers James Karam and Rocky Kempenaar bought the 3-acre lot at 310 West Main Road for $3million, according to paperwork filed last month in Town Hall.

During the past couple of years, the pair has built Hampton Inn & Suites and Residence Inn hotels across the busy four-lane road from their latest acquisition, which is zoned for commercial use.

Karam and Kempenaar said new construction on the site likely is a couple of years off, with the property being considered for a chain hotel and eatery, rumored to be along the lines of an Olive Garden restaurant and Hilton or Marriott-style hotel.

“Our partnership has worked so well so far, so we decided to pursue another opportunity,” Kempenaar said.   “We’re looking at different options with the property, all of which we’re excited about.”

“There aren’t many more opportunities like it on West Main Road,” Karaam said.  “It’s analogous to waterfront property in many places.  West Main Road is a great place for business.”

The land became available over the summer after Ford corporate closed down smaller operators, like the one in Middletown, to concentrate on larger dealerships.  The move was part of a nationwide restructuring to eliminate close to 4,400 franchises. 

Like their two other projects, Karam said a market study will be performed of the area economy to help determine what is best suited for the property that is bordered by Beacon Street to the south and a residential neighborhood in the back.

With the ever-expanding tourist season and strong defense-related industry, Karam said there is more of a demand for rooms on Aquidneck Island than ever before.  He said unlike nearby destinations, the tourist season here lasts far longer, around 35 weeks compared to about 12 or 16 on Cape Cod.

“Newport has a growing and dynamic market that should continue to grow,” Karam said. “As early as 2000, it seemed like the market would wrap up right after Labor Day.  Now, that doesn’t happen until November and it starts back up again in the spring.  I give the (NewportCounty) Convention & Visitors Bureau credit because they’ve really done a great job helping put the area on the map even that much more.”

Figures from the visitors bureau indicated there are 3,901 rooms in NewportCounty, including 1,359 in Middletown.

Karam said he expected plans for around a 100-room hotel and related use to be filed and permits secured for the project in 2009, with construction completed for an opening in 2010.

“If you look at what’s going on in downtown Newport, most of the hotels charge $400-$500a night and up to $1,000 a night,” Karam said.  “While that caters to some people, there is also a large majority of people who come an visit Newport and do business here that need a high-quality product at a more reasonable rate and, based on what we’ve seen, there’s a demand for another 95 to 100 rooms in that price range.”