During the late 20th century, downtown areas across Arkansas and the U.S. experienced a period of decline that has only been rectified in recent years, but perhaps no city’s downtown decay was as dramatic as that of Hot Springs.
After the area was added to the Historic Preservation Alliance of Arkansas’ list of most endangered places in 2014, the Arkansas Democrat-Gazette’s Rex Nelson penned a column titled “The Shame of Hot Springs” lamenting the city’s condition.
Hotels have come to symbolize the waxing and waning of the downtown. The Majestic Hotel fire in 2014 was a sobering moment for many history buffs and one that seemed to exemplify the city’s decline. Conversely, news of hotel renovations has generated increased optimism, which Nelson noted in a more recent column, “Hot Springs Rebound.”
The Arlington and Park hotels are getting a facelift, and last year, Parth Patel shared with Arkansas Money & Politics his plans to transform the Medical Arts Building into a 100-room hotel. Such projects have the potential to rekindle the prosperity the historic tourist town saw during its glory days.
THE ARLINGTON
Of all the hotels in Hot Springs, few are as famous as the Arlington Resort Hotel & Spa, a massive presence overlooking Central Avenue. As was the case for many, it was the history of the building that drew owner Al Rajabi to the hotel.
Al Rajabi
“I fell in love with the Arlington Resort Hotel & Spa when I first saw her, and I fell more in love with her when I read some of her history,” he said. “I just knew there was an opportunity to restore her and tell her story. She is iconic and one of a kind.”
He said the building required a complete remodel inside and out.
“This is very extensive work as we have to make sure the historical elements of the property are kept,” he added.
Workers removed all the painted plaster outside, taking the exterior down to the brick, then restored the brick and added seven new layers of plaster with color blended into the last two layers, he said.
With ongoing supply chain problems plaguing the construction sector, getting materials to the job site is a challenge, he said, and finding the right materials for the restoration can be a challenge in itself.
The iconic Arlington Hotel is being completely remodeled inside and out. (Photo courtesy of the Arlington Hotel)
Rajabi said he has not received any historic tax credits, despite applying for them, and that he is not eligible for opportunity zone benefits, having purchased the building before the area was designated as such.
“I think developers in every part of the world are risk takers, and time will tell if a project makes sense,” he said. “You can run a financial model, and it could make sense on paper, but at the end of the day, there are a lot of outside factors that can determine the success of a project.”
He said Hot Springs is in a “good spot” when it comes to hotel rooms and should work to make sure there are enough restaurants downtown to satisfy visiting foodies. Cautious about overbuilding, he suggested developers finish ongoing projects and evaluate capacity before adding additional rooms.
For now, though, the Arlington sells out during busy times, and Rajabi said the new hotel rooms being added by the current projects will attract even more tourists, providing a boost to local restaurants and retail.
“It’s a domino effect, which will affect everyone when the town continues to rise up,” he said. “Remember, Hot Springs was the place to be at one time, and I think with the right people in power and the right investors, we can bring her back.”
Rajabi remembers the days when a lot of downtown shops were vacant, and although the Arlington’s renovation has helped drive some development on the strip, he said most of the buildings along Central Avenue are still empty from the second floor up.
He said he would like to see more work from the city, county and state to attract investors to the city.
“There are so many more opportunities in Hot Springs, so many beautiful buildings that need attention,” he said. “I hope to see all the buildings come to life in the future. We need to attract more investors to the area.”
Further complicating matters are the high interest rates endemic to the current investment climate.
“It’s going to be much more difficult if the rates don’t come down soon,” he said. “With the inflation that this country has seen, it is going to make it much more expensive to restore and develop, which makes it even more important for municipalities and government to play a much larger role in assisting, in providing the right financial tools.”
THE PARK HOTEL
Situated at 211 Fountain St., the Park Hotel is a picturesque 1929 structure with Spanish revival influences now being brought up to snuff by developer Josef France, who also owns Hot Springs Lodge and Resort and recently purchased the National across from Oaklawn with an eye for providing short-term rentals for out-of-towners.
Josef France
“The beautiful thing about doing this old hotel is people in Hot Springs have passed over this and passed over this and just kind of been scared to take it on,” he said. “Luckily, in my career, I’ve done a lot of this type of stuff, so it’s not as scary for me as it is for other people.”
Balancing modernization and historic preservation is key to the renovation of the Park Hotel.
(Photos courtesy of the Park Hotel)
The building will receive new mechanical, electrical, plumbing and HVAC systems, he said. In addition, the windows will be replaced and bathrooms will be remodeled. Other new features include a rooftop bar, a lobby bar and a unique,
second-floor pool area built into the mountain. There will also be two additional heated pools and a gated parking lot, he said.
“The bones of that old hotel are great,” he said. “It’s a concrete-and-steel structure with a brick-and-limestone facade. Basically, what we’re doing is going in and taking it back down all the way to the operating system.”
The hotel is set to reopen in fall 2025.
Many of the historic details that make the Park Hotel so beloved will be preserved, he said, including the mosaic tile, wood trim, marble staircase and distinctive brass entry doors.
Although the hotel is in an opportunity zone, France said the historic tax credits have been more impactful, completely covering the cost of the new windows.
“The state’s done a good job of keeping the historic tax credits,” he said. “They’re very well needed for these sized projects. They’re crucial to make it work.”
Balancing modernization and historic preservation is key to the renovation of the Park Hotel.
(Photos courtesy of the Park Hotel)
He said he expects the renovations of the Park Hotel, Arlington and Medical Arts Building to add 300 or 400 hotel rooms to the “nucleus” of downtown.
“You look back 15 years, 20 years ago, the downtown was struggling,” he said. “I think Hot Springs has done a great job of revitalizing and pushing for downtown.”
The addition of casino gaming at Oaklawn was a major catalyst for development, he said. He added that he does not expect Oaklawn’s hotel to edge out his and other hotels. Not everyone wants to stay at the casino. Some prefer the downtown area, and with a lower price point coupled with unique amenities, he said he expects to garner his share of patrons.
Nor does he expect short-term rentals to be the downfall of the local hotel industry, since the rentals attract a different set of travelers.
He added that he believes the hotel industry in Hot Springs will continue to thrive.
“If we can get a few more things going in Hot Springs, maybe some music and some things for families to do, I think we continue to grow on a path somewhat like a mini-Branson,” is the goal, he said. “It’s our goal for Hot Springs to become more of a family-oriented tourist town.”
HAMPTON INN & SUITES
While some projects seek to restore aging structures to their former glory, others bring new life to foundations inhabited by ghosts. Built in 1907, the Goddard Hotel once anchored the southern end of the Hot Springs strip, Preserve Arkansas states.
A three-story, red-brick structure accented by a neoclassical pediment, the grandiose hotel, like so many in Hot Springs, fell into disrepair and sat vacant during the late 20th century. The structure was demolished in 2007, the building’s 100th anniversary year.
The vacant lot where it sat was a curiosity to passersby because of the historic penny tile that remained. However, the derelict square at 830 Central Ave. will soon be resurrected as the site of a new Hampton Inn & Suites set to open in July 2025.
Blair Allen, partner at Beechwood Pinnacle Hotels, which will operate the hotel and currently operates the Courtyard by Marriott in Hot Springs, said although Beechwood Pinnacle considered rehabilitating a historic building, it ultimately chose to build from the ground up to mitigate any “unknowns.”
Blair Allen
Despite being a new build, the hotel’s style will mimic its historic neighbors, he said. In addition to Hampton standards such as a mix of rooms and suites, complimentary breakfast, a swimming pool, and a fitness center, the hotel will include a ground-level bar.
“The spot that we are developing is going to be kind of the gateway to downtown,” he said. “It’s one of the first things you come upon. There’s lots of good businesses right there in that gateway, if you will. Deluca’s [Pizza] is across the street, and as you head toward the Arlington, you’re passing lots of great restaurants and the bathhouses and everything. We are kind of at the beginning of the downtown corridor.”
When choosing where to develop, hoteliers look for places with a mix of people traveling for business and leisure, as well as places that make sense geographically, he said. Encouraged by the performance of the Marriott and the trajectory of the city, he said, Beechwood Pinnacle chose to take on an additional project in Hot Springs.
“Hot Springs has really changed as far as a tourism destination over the last few years, mainly due to the investment at Oaklawn,” he said. “Oaklawn’s expansion, casino and investment has really increased the number of folks interested in coming to Hot Springs, and it’s also changed the diversity of all the different people who like to come to Hot Springs.”
Whereas Hot Springs was once a two-season town dominated by racing season and lake season, gaming and a slate of city events now bring people to the city year-round, which has spurred a rash of restaurant and other development, he added.
The new Hampton Inn & Suites is set to open in July 2025. (Rendering courtesy of Beechwood Pinnacle Hotels)
“The synergies of downtown were exciting to us,” Allen said. “There’s been a reinvestment in downtown as far as the other hotels and new hotels. Old ones have had money spent on them, and new ones have been built. There’s just been a whole renewed energy downtown of people dining and enjoying the downtown area in Hot Springs, so we wanted to have a presence there.”
He added that even with the renovations at the Park and Arlington, the conversion of the Medical Arts Building, and the addition of the hotel at Oaklawn, along with a new crop of short-term rentals, he does not expect the hospitality market to become oversaturated.
“It’s very rare in tourism that you have a hotel doing absolutely great and the one next door doing poorly. That’s a rare occurrence,” he said. “Normally, we all rise together. We all enjoy successes and failures together, so I do think the rising tide will lift all ships.”
FEATURE PHOTO TOP: The iconic Arlington Hotel is being completely remodeled inside and out. (Photo courtesy of the Arlington Hotel)
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