By JAMES FINK
jfink@bizjournals.com | 716-541-1611

Plans for three downtown Buffalo hotel projects are moving forward, including the first phase of a renovation of the region's second-largest hotel.

The owner of Adam's Mark hotel, WNY Lodging LLC, is working with the Erie County Industrial Development Agency on a $5.3 million incentive package to help finance the renovation of all 486 rooms and conference center space in the building.

The ECIDA set an Aug. 3 public hearing, with the board of directors likely to vote on the package when it meets Aug. 9. WNY Lodging is an affiliate of the Corning-based Visions Hotels Inc.

Visions acquired the Adam's Mark in February 2009 for $8.87
million. Last year, the ECIDA approved a $700,000 incentive package for an equipment upgrade.

"We knew at the time they would be coming back," said Karen Fiala, coordinator of tax-incentive products. "We're glad to see Visions agreeing to invest more than $5 million in the hotel."

The Adam's Mark has 486 rooms and 247 full- and part-time employees.

General Manager Minesh Patel, also WNY Lodging regional manager, said the investments are a prelude to the hotel changing its brand name and dropping the Adam's Mark affiliation. Last year, WNY Lodging officials said they were negotiating with Crowne Plaza.

Patel said those talks are under way, but he did not rule out another corporate flag on the property.

"It could be another national brand. Nothing is finalized," he said.

Visions has 19 hotels in Upstate New York, from Watertown and Rochester to Olean. Locally, the company bought the Comfort Suites hotel at the corner of Main and Chippewa streets in 2008. Visions has numerous corporate brand names in its portfolio, including Comfort Suites, Hampton Inn, Holiday Inn and Best Western.

The brand-name change at Adam's Mark will come within three years, Patel said.

Several downtown hotels have undergone major renovations, including the Hyatt Regency Buffalo, Hampton Inn & Suites and WNY Lodging's Comfort Suites. The 150-room Embassy Suites in the Avant building opened last summer, and Mark Croce is working on a boutique hotel in the former Curtiss Building.

"Having a renovated Adam's Mark makes Buffalo a stronger hotel market," Patel said. "We are competing with the Embassy Suites, the Hyatt and places like that. You have to keep up or risk losing market share."

The Adam's Mark, with its in-house convention and meeting space, is popular with large groups and sports teams.

Patel said work will start this fall and will go floor by floor, with minimal disturbance to hotel guests.

Renovations will be suspended for more than three weeks in December and January during the World Juniors hockey tournament.

While WNY Lodging is focusing on the renovation's bricks-and-mortar aspect, the Hamister Group Inc. is quietly headhunting in the local hospitality industry for people to run its 117-room Hilton Garden Inn hotel and 34-room boutique hotel. They're both anchors of neighboring downtown Buffalo projects.

Hamister Group Chairman and CEO Mark Hamister is coordinating the search.

The Hilton Garden is a key element of a redevelopment plan for the 355,000-square-foot, former flagship location in the now-closed AM&A's department store. Hamister and developer Rocco Termini are planning a $70 million face-lift of the building, with Hamister looking to move his corporate offices there from Amherst.

The deal, however, hinges on securing tax incentives and breaks under a state historic tax credit program. There's a catch, however: Gov. David Paterson may want to delay the program for three years because of New York's $9 billion-plus budget deficit.

"We are committed to the project. Absolutely," Hamister said. "But the (historic tax credit) delays would kill this project. I'm not going to stop fighting for it."

The second Termini/Hamister project - conversion of the Hotel Lafayette on Washington Street, a block away from the AM&A's building - is in a similar position. The $35 million development hinges on the state's historic tax credits.

Hamister is planning a 34-room boutique hotel as an anchor of Hotel Lafayette.

Termini said between the AM&A's and Hotel Lafayette projects, more than 460 construction jobs could be created and 230 permanent jobs will be filled.

"I hope I'm pleasantly surprised (about the historic tax credits)," he said. "In these tough economic times, you need every advantage."