Will Rogers World Airport to Tear Down Its Only Terminal Grounds Hotel

Jan. 9—Will Rogers World Airport is set to destroy the only hotel on its terminal grounds following litigation with its last operator and complaints about cleanliness and service.

The Quality Inn at 6300 Terminal Drive closed in June following litigation between the Oklahoma City Airport Trust and operator OM Hospitality, which leased the property from the trust.

The airport trust owns the 62,646-square-foot, two-story, 117-room hotel, which was built in 1972 and underwent an extensive renovation in 2011.

Stacey Hamm, airport spokeswoman, said the trust sought possession of the property in March 2020, after making several attempts to get the operator to make necessary repairs. OM Hospitality filed counterclaims alleging breach of contract, resulting in a $2 million settlement paid by the airport trust just weeks before the dispute was to go before a jury.

An appraiser hired by the airport trust reported in June the hotel was in poor condition needing costly repairs. The hotel was valued at $576,095, with the appraiser concluding it was not the highest and best use of the site.

"From an operational standpoint, a hotel with only two floors, no restaurant, no elevator, a failing roof system, and other water intrusion issues, pose significant operational constraints for any operator to overcome," Hamm said. "Unfortunately, any renovations would be extremely costly and extensive. When the trust regained possession of the hotel and began inspecting its condition, it was determined that the hotel was more dilapidated than was previously anticipated."

The hotel opened with a ground lease shortly after a new terminal was built in the late 1960s. It closed once before after a prior operator declared bankruptcy. At that time a new operator, Robert Haupt, announced a $2.2 million renovation as part of a 25-year lease.

Hotel Broker One, a national hotel brokerage based in Oklahoma City, assisted in both the 1997 lease and the discussions that took place between the airport trust and OM Hospitality. Peter Holmes, COO at Hotel Broker One, said Haupt kept his promise and turned the property from an old-style motel to a modern hotel with meeting rooms, a restaurant and other amenities.

The hotel operated under a Sheraton Four Points flag which was downgraded to a Quality Inn under OM Hospitality, which took over the lease from Haupt. Online reviews show an array of complaints during the final years ranging from bugs and unclean rooms to a dirty pool, and plumbing and heat and air problems.

"When Bob (Haupt) owned it, it was very successful," Holmes said. "When he renovated it into a Four Points it won a lot of awards. The restaurant and bar, Follies, won a lot of awards. It had a moment in time when it was doing very well."

The hotel at Will Rogers World Airport is to be demolished at a time when other airports are upgrading or building new hotels. Tulsa International Airport has two hotels on its grounds, and one with a Clarion Inn flag was recently torn down to make way for a new four-story Hilton property.

At Dallas-Fort Worth International Airport, a Grand Hyatt operates at one of the terminals with a dedicated Skylink transit station. The 298 rooms are soundproofed and guests have access to three restaurants, a rooftop pool, a 24-hour gym, a business center and views of the airport runway.

Hamm said airport hotels are still successful, though the business model locally changed over the years.

"Years ago, and like many on-airport hotels across the country, the hotel at Will Rogers World Airport was used by both the general public and various flight crews for stays while in Oklahoma City," Hamm said. "In recent years and with more competitive hospitality markets, airlines have made other accommodations and arrangements for their flight crews off airport premises and fewer flight crews stayed on-airport."

With airports urging travelers to arrive two hours prior to their flights, the market shifted.

"Prior to the hotel's closure, the airport understood that the typical guests were people who would drive in from remote areas of Oklahoma and stay overnight in the hotel to catch an early flight or who arrived on later flights and didn't want to drive home late at night," Hamm said.

Holmes said the city's airport hotel was challenging to refinance due to the ground lease, the loss of the Sheraton Four Points flag, and the size of the property, which he called "undersized" for completing any sort of redevelopment.

Having a hotel on airport grounds is something expected by travelers and gives an airport a level of sophistication, Holmes said. Even airports in smaller markets like Wichita, Kansas, have hotels on airport grounds. He said the city is missing an opportunity to have an aviation themed hotel at Will Rogers World Airport that could showcase a history that includes Wiley Post and Braniff Airlines.

"We wanted to see it remain a hotel," Holmes said. "We think a hotel at the airport is beneficial. It's highly unlikely we will see a hotel built on airport grounds after this mainly due to FAA restrictions. It doesn't appear our airport is highly motivated to have a hotel when we have a lot of hotels nearby."

Staff writer Steve Lackmeyer started at The Oklahoman in 1990. He is a reporter, columnist and author who covers downtown Oklahoma City, related urban development and economics for The Oklahoman. Contact him at [email protected]. Please support his work and that of other Oklahoman journalists by purchasing a subscription today at subscribe.oklahoman.com.

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