A $40 million sale of the downtown Hilton hotel to Prism Hotels & Resorts was scheduled to close Wednesday.
Prism, based in Dallas, has been managing the hotel since May as it looked into whether to buy the property from the Baton Rouge Area Foundation’s Commercial Properties Realty Trust.
Commercial Properties spokesman Mukul Verma said the cost of converting the derelict former Capitol House hotel on Lafayette Street into the Hilton was $62 million.
The one-time state and federal historic tax credits and the ongoing tax increment financing deal meant Commercial Properties “pretty much broke even on the hotel,” Verma said, though he did not give specific figures.
Verma said redeveloping the property, which was an eyesore for decades, was an important part of downtown’s resurgence. Verma pointed out there were no hotels downtown when Plan Baton Rouge set out to revitalize downtown in the late 1990s, and now there are two others open and another one — the Hampton Inn & Suites — under way.
Prism, which could not be reached for comment, was part of the redevelopment team headed by Commercial Properties and managed the hotel briefly after it opened in 2006.
Verma said selling the hotel allows Commercial Properties to focus on its core business of shopping centers.
The company recently announced Galatoire’s restaurant and Trader Joe’s will be built at Acadian Village Shopping Center at Perkins Road and Acadian Thruway.