A company that is interested in buying the now-closed Plaza Hotel has canceled a scheduled meeting with Pine Bluff elected officials but plans to reschedule.
That meeting had been scheduled for Thursday.
The hotel owner, Bruce Rahmani closed the hotel in 2015 because of a prolonged period of fewer guests and the alleged theft of $25,000 from a safe. Rahmani is looking for a buyer.
Majestic Hospitality Management Group consultant and negotiator Darrell Gibbs said he anticipates coming to Pine Bluff within a month to discuss the hotel. Majestic sees the hotel as an opportunity and wants to investigate it, he said.
Majestic is conducting due diligence and cannot discuss monetary figures until it gathers more information, Gibbs said. This process includes feasibility studies, demographics and income analysis, he said.
Independent reporting for Pine Bluff & Jefferson County since 1879.
“It is a large undertaking. As far as giving a figure, we have to have our facts together before we begin,” Gibbs said. “We want to bring in jobs and have a place for job fairs and agencies to have visitors.”
Rahmani said he did not know about the meeting or its cancellation. He said he has not heard from other companies that are interested in buying the Plaza Hotel. He is listing the hotel at $2 million to $2.5 million, but is willing to negotiate.
“My desire is to sell it sooner rather than later; it is costing me $25,000 per month,” Rahmani said. “It is an eyesore for the city. It is a distressed situation. I am hoping someone will come up with solutions.”
Pine Bluff Mayor Debe Hollingsworth said she will wait to hear from Gibbs regarding re-scheduling the meeting. She said she has also not heard from other parties in reference to buying the Plaza Hotel.
Gibbs said Majestic wants to research the University of Arkansas at Pine Bluff to determine a market for its guests staying at the hotel and using the convention center.
“According to reports, the property needs repair work and renovations,” Gibbs said. “We are interested in seeing if state and federal funds are available to bring the hotel up to standards and to make it better than standards.”
Rahmani said he is open to converting the hotel into an apartment complex or into dorms for UAPB.
“UAPB rented two floors for students in the past and it worked out great,” Rahmani said. “That would be great. I would lease the property and would remodel it if there is a good tenant. As a landlord, I am willing to do that. It is not a question of do I have the money.”
Rahmani said he hopes governmental agencies could have a use for the hotel.
Rahmani had previously offered to sell the hotel to the city for $3 million. The Pine Bluff City Council rejected that offer.