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In Dallas, an office building that once housed Life Insurance has just opened its doors as Homewood Suites by Hilton Dallas Downtown. Owned by , the 130-suite extended-stay is an example of Homewood’s employment of its adaptive re-use program as it continues its aggressive expansion plan across the country.

Carrying the address of 1025 Elm St., the new is not just an adaptive reuse ; it’s an historic adaptive reuse . The 10-story structure was originally erected in 1918 as the office of Texas & Pacific Railroad. It sat vacant for a decade after United Fidelity’s departure until Lowen acquired the property in foreclosure proceedings.

“Many of us hospitality shy away from re-adaptive use because of the many unknowns when developing the asset, which can increase cost, but with recent historical tax incentives from the state, I feel that more projects will come on board,” , vice president, Lowen Hospitality, told .

The transformation of the 143,000-square-foot onetime office building into the Homewood Suites Dallas carried a tag in the mid-$20 million range.

It appears that Lowen and Homewood chose their location well–the demand in the downtown area is strong and getting stronger, spurred by a growing number of conventions and an increase in businesses moving downtown. Homewood Suites Dallas is in the thick of it, sited just a hop, skip and a job from the 2 million-square-foot Omni Dallas Convention Center, and adjacent to the DART rail station and Dallas Underground Pedestrian Network.

“It’s resulting in more training, relocation and four-day conventioneer business for extended-stay businesses, whilst still catering to the ever present government business that all extended-stay relies on,” said Naik.

But it’s not just Dallas that’s experiencing lively activity in the extended-stay segment of the hotel sector; the trend is national.

“In our opinion, we feel [extended-stay] has recovered and the has a lot of potential that many hospitality developers before did not realize,” Naik added. “The fact that Hilton introduced Home2 Suites is further proof that the extended-stay is moving forward with great pace.”


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