Cedar Rapids council likes Hilton’s proposal for hotel

CEDAR RAPIDS - It's looking more and more like the new life for the downtown's now-closed, city-owned hotel will be managed by Hilton Worldwide and will carry the name Doubletree by Hilton.

The City Council on Tuesday approved a recommendation by a City Hall selection committee that the city enter into negotiations with Hilton Worldwide to manage the hotel, the U.S. Cellular Center arena connected to it and the city's new convention center, which will be built next door.

The council approval came after John Frew, the project and construction manager for the hotel and Convention Complex project, reported to the council that the Hilton Worldwide management proposal was “so far superior” in value to the city, compared to four other proposals, that it didn't make sense to bring the competitors to town for interviews.

Hilton Worldwide has agreed to waive the franchise fee it would charge the city to use its name on the hotel if Hilton is managing the hotel and complex, Frew said. Hilton's proposal, he said, also forecast the largest profit margin for the city among the five proposals.

The city bought the Crowne Plaza Five Seasons Hotel from its creditors for $3.2 million earlier this year. It is now closed for a $21.8-million renovation. Likewise, the U.S. Cellular Center arena is closed for renovation

The arena and convention center are both part of a $75.6-million Convention Complex project. The hotel and arena are slated for reopening in the fall of 2012 with the convention center scheduled to open early in 2013.