Hallmark Inn owner selling hotel to California operator

Sales expected to close by Oct. 1

The Best Western Hallmark Inn is soon to be under new ownership.

In an Aug. 31 memo to hotel employees, Hallmark Inns and Resorts, Inc. President and CEO William Allred said that the company accepted an offer to sell its Moses Lake hotel, located at 3000 Marina Drive, to Grewal Hotels, Inc, a hotel operator based out of California.

"It's somewhat of a tax issue with us," Allred said. "We've owned the hotel for over 30 years and it's fully depreciated. We are not able to take any depreciation on it, and it has no tax advantages to us anymore. Plus, it was one of those deals where we thought it was time."

Allred said that the company was not actively shopping the hotel around, but an active buyer was looking for property in the area and made a good offer.

"Until (the sale) closes we own it, but my understanding is they plan some major upgrades to the hotel," he said. "They are experienced hotel operators and owners, and fell in love with the location on the lake."

Avtar Grewal, vice president of Grewal Hotels, reiterated Allred's assertion that the hotel was still in escrow, so it has not been purchased yet. He said that meetings about the purchase began about three and a half months ago.

"It's a good business — it's a hotel business, and our corporation has already owned hotels in other states," Grewal said. "We thought that (the Hallmark Inn) was one that was good for our corporation. We'll do the best we can, create some more jobs in the community, and expand as much as we can."

Grewal said that the company has not decided on a name for the hotel yet. Hallmark Inn restaurant Cade's will also undergo a change, although Grewal said that the company will keep the restaurant.

"We plan to make a lot of changes to the lounge and restaurant," he said.

Allred said that the new owners of the hotel have said they will retain all of the hotel employees, which he estimated reached 80 people, but Grewal said that was still undecided.

"It's too early to say yet," Grewal said. "Even if we do switch one or two employees, everybody will be hired from Moses Lake."

Grewal also said that the company will probably help out in the Moses Lake community.

There is no exact date for the sale of the hotel to close, but both Grewal and Allred said they are expecting it to close by October 1.

Allred said he was sad about the situation, after years of striving to be an integral part of the community and a good employer.

"We've just got a tremendous amount of very long-term, wonderful employees," he said. "At some point in time, you need to move on. There's a difference, we found, in thinking about it and actually doing it, from an emotional standpoint."