ROGERS — The Lane Hotel, once known as the “Palace of the Ozarks,” has been vacant for years, but some residents think the building could become a hotel again.
The hotel is at Second and Poplar streets.
The building, which last housed a retirement facility, is owned by a New Jersey company and managed by BFG Management Co. The building has been on the market since 2005. The asking price is $1.99 million, said Craig Hull, the local real estate agent representing the owners.
City and community leaders agreed a boutique hotel would benefit the downtown district during a recent meeting on the city’s Vision 2025 plan.
At A Glance
History of the Lane Hotel
• Built in 1928 as the Lane Hotel for Little Rock owner S.A. Lane, the five-story structure was advertised as the first fireproof building in Arkansas.
• In 1935, Earl Harris of Harris Bakery bought the building and changed the name to the Harris Hotel, which was known as the “Palace of the Ozarks.” The Orchard Room, added to the back of the hotel around 1939, was a popular restaurant.
• One-time guests of the Lane included aviator Amelia Earhart, boxer Jack Dempsey, and actor Errol Flynn.
Source: Rogers Historical Museum
A boutique hotel is a recent innovation, said Godwin-Charles Ogbeide, a hospitality expert at the University of Arkansas.
“The idea surfaced about 10 years ago. A boutique hotel is quality, small and unique lodging, with a full-service restaurant, bar, small event center and other amenities,” Ogbeide said.
Local officials think the former Lane Hotel could be refurbished into a boutique hotel and, if done right, could be the beginning of an entertainment center in Rogers.
“The building has a lot of potential,” said Kerry Jensen, executive director of Main Street Rogers.
“Such a hotel would work in Rogers because it’s close to the Rogers airport. It would have to have a top-flight restaurant, a bar and shops, and I think it could give us the opportunity to have a nightlife downtown,” Jensen said.
The hotel should also have a small event center where smaller conventions, or meetings, weddings or other receptions could be held. It could become a social gathering place again, Jensen said.
The Lane Hotel was built close to the depot to serve travelers when the train was the fastest and most acceptable way to travel. Parking for automobiles was secondary and limited parking was available, local historians said.
“Parking would be a problem,” Jensen said. “There would have to be a parking deck built or have valet parking because parking is still limited around the hotel.”
Jensen and others said they think a downtown hotel would also be a good fit with the larger hotels along Interstate 540, giving visitors another lodging option.
Joe McInerney, president and chief executive officer of the American Hotel and Lodging Association, said a boutique hotel could work in a town the size of Rogers.
“Boutique hotels, normally with less than 100 rooms, serve business or tourist travelers looking for personal, friendly service with lots of amenities,” McInerney said.
“Whether such a hotel would be viable depends on several factors, but one of the most important is what does the area have to offer? How many hotel rooms does the city have and what is the occupancy rating?” he said.
Boutique hotels in cities of all sizes are doing well, McInerney said.
“The hotel industry was hit hard during the recession, but the market seems to have turned around. Development of hotel property is growing, because interest rates are low and now banks are beginning to loan money again. The outlook through 2017 is very good for the hotel industry,” McInerney said.
The 21c Museum Hotel in Bentonville is a good example of a boutique hotel, hotel experts said.
The 21c Hotel has a 12,000-square-foot art museum as part of the hotel and a full service restaurant and bar. The hotel is about a quarter of a mile from Crystal Bridges Museum of American Art and two blocks from City Hall in downtown Bentonville.
“The hotel opened in February and seems to be doing quite well,” said Kalene Griffith, president and chief executive officer of the Bentonville Convention & Visitors Bureau.
“We won’t see any hotel tax numbers until the end of the month, but I’ve been told by hotel officials, the hotel has been nearly full since it opened,” Griffith said.
A message left at the 21c Museum Hotel for Rick Reed, hotel marketing manager, was not returned Friday.