Downtown SB hotel closing for renovation

SAN BERNARDINO -- A major downtown hotel will close this month for a multimillion dollar, one-year plus renovation of its rooms, convention center, lounges and other facilities.

Satar Khajehmiraki, general manager of the Clarion Hotel, which sits on E Street adjacent to City Hall and has been chronically under-occupied for years, said Kingdom of Bahrain-based owners of the hotel decided to make a major investment into the hotel because of confidence in the city, its downtown and its political leadership.

"They have decided to invest more than $10 million to enhance the hotel and better serve the community," Khajehmiraki said. "We see the city of San Bernardino as having a lot of opportunity and potential."

The total investment will be $10 to $12 million, Khajehmiraki said, and will require 10 to 14 months of work, during which the hotel will be completely closed. May 14 is the last day of business, Khajehmiraki said, with a grand re-opening aimed for late summer or early fall 2009.

Some 60 employees will be out of work, but Khajehmiraki said the hotel will try to help with re-assignments at other area hotels.

The 230-room hotel is operated by First Hotel International Inc., a U.S. headquartered company owned by investors in Bahrain, Khajehmiraki said.

City leaders expressed satisfaction at the decision, saying the dim and underoccupied - but also towering and well-positioned - structure was desperate for upgrades.

"This is a big step, huge really," said Wayne Austin president and CEO of the San Bernardino Convention and Visitors Bureau. "This means a first-class hotel and a professional stop for our corporate traveler clientele will be in place downtown."

Austin noted that renovation of the hotel's adjoining 22,500 square-foot conference center will provide a competitive venue for major corporate and government conventions, as well as private functions.

At the same time, Austin said, the demand for a first-class hotel is high, with county government, court, airport and freeway development abuzz in the city.

Jim Morris, Mayor Pat Morris' son and chief of staff, said the mayor, Austin, Khajehmiraki and others had been engaged in talks for the last 18 months, looking to secure investment into the hotel. Jim Morris said the investment underscored the growth in the city's hospitality industry, the potential of its downtown and its viability as a private-sector investment.

"This is a major part of the ongoing revitalization of downtown," Jim Morris said.
Judi Penman, president and CEO of the city's Chamber of Commerce, said a refurbished hotel and convention center would be a strong new draw downtown.

"We'd be looking to be one of the first groups to sign up for our events there," Penman said.