A new study says that if and when the renovated Baker Hotel is back up and running in Mineral Wells, it could realize $2.1 million in net operating profit.
In 10 years, annual net profits could reach $5 million.
That’s according to a projected performance study compiled by Houston-based PKF Consulting USA for Chad Patton and Laird Fairchild of Baker Hotel Development Partners LLC.
The study looked at a variety of local and regional economic factors, and compared the Baker Hotel, operating as a renovated 157-room destination resort and spa, to six other comparable Texas resorts..
According to the Mineral Wells Index, the study projected 56 percent occupancy of the hotel’s 57,305 available room rentals in the first year at an average daily rate of $182, totaling $5.8 million.
The redevelopment team says they have hired a new foreign investment partner, Pathways, which is working on securing up to $30 million in EB-5 investor funding for the project, accounting for about half of the project’s reconstruction costs. Other funding sources include federal and state grants, and $4 million in local funding support overwhelmingly approved by Mineral Wells voters last May.