B
eeson Properties KNA Partners has acquired a former hotel in west Houston with plans to transform it into an upscale shopping center. The developer, led by John Beeson, purchased the 173-room La Quinta Inn & Suites near The Galleria for an undisclosed price. The property, which spans three acres east of I-610, was sold by KB Houston Galleria, a La Quinta franchisee.

    Beeson expressed his preference for developing retail spaces over hotels, citing the transient nature of hotel tenants. The seller initially offered the 102,200-square-foot hotel at $225 per square foot, but Beeson negotiated a lower price. Plans call for demolishing the six-story hotel to build a 95,000-square-foot shopping center with shops, restaurants, and a parking garage.

    The new development will feature a two- or three-story building surrounded by a parking lot, preserving many of the site's oak trees. The project, designed in-house, aims to attract high-end retailers similar to those found at Beeson's existing Midlane shopping center on Westheimer Road. Several restaurateurs have already expressed interest in leasing space, and demolition could begin within 30 days.

    The closure of the La Quinta Inn marks a trend of struggling hotels along the Loop unable to keep up with rising land values. The La Quinta franchisee had operated a 20-hotel portfolio before terminating its agreement, citing difficulties in competing with increasing property costs. Beeson Properties KNA Partners owns 18 shopping centers and commercial properties in Houston, with one project currently in development.