James A. Procaccianti considers a style of carpeting for one of the hotels his company operates
James A. Procaccianti
POSITION: President, The Procaccianti Group
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BACKGROUND: Procaccianti has 25 years’ experience acquiring, renovating, developing and managing more than $1 billion of commercial real estate. His company owns or operates more than two dozen hotels around the country, with more than 5,500 guest rooms, 500,000 square feet of space and 3,000 employees. The Procaccianti Group has developed franchise agreements with Marriott, Hilton, Starwood and Radisson.
EDUCATION: University of South Florida; Bryant College
RESIDENCE: Cranston
AGE: 46
Last week, the Rhode Island Convention Center Authority was planning to discuss further its decision to award the purchase of The Westin Hotel in Providence to Cranston-based Procaccianti Group. The Procaccianti Group has been selected to purchase The Westin for $95.5 million and build an additional tower at a cost of approximately $50 million.
The deal has been the subject of controversy because of a 12-year-old court case. Procaccianti used a 250-acre parcel of land in Hopkinton as collateral on a $3 million loan during the state’s banking crisis and then bought the land back a couple of years later. When the land was sold for less than the loan, the state sued the company. Procaccianti argues that the state should have sold the land in question for more money to pay down the loan.
On Jan. 24, Procaccianti went on the offensive, urging the state to release all records related to DEPCO, and for the Convention Center Authority to release all information included in all the bids submitted regarding the sale of The Westin.
PBN: Are you worried the loan controversy could derail your plans for The Westin?
PROCACCIANTI: I don’t see that, because I don’t think one has anything to do with the other. Secondly, in my eyes and in my attorney’s eyes, the case has been settled. It was negotiated and settled. We have a lot of correspondence that was written and e-mails back and forth … I think anyone who looks at that will come to the determination that unequivocally, this case was settled. Because we bid on the Westin … all of a sudden, it’s not settled. That is not our position, whatsoever.
PBN: What factors did you consider in deciding to purchase The Westin?
PROCACCIANTI: The Westin is, institutionally, a great asset. It is very similar to the properties we have purchased over the last three to five years. It has the same amenity package and demographic dynamics that we have sought in acquisitions around the country. That’s what attracted us. Obviously, it’s great for us as a company to own a great institution like The Westin. When we have people – lenders, appraisers – come in and visit us, we want to be able to go to a property that is the same ilk of those we have been purchasing. And the opportunity to build office space for our company and house it in a 500-plus room hotel is exciting. The other thing is that we are really excited about what is happening in Rhode Island, and in particular, in Providence. The mayor has done an outstanding job.
PBN: Does Providence need more hotel rooms, like we keep hearing?
PROCACCIANTI: Yes. When we look at the hotels that we have in other states that are next to convention centers or at the convention centers that we operate there is usually one 400- or 500-room hotel that has all the amenities and it is the convention hotel. Being next door or a cab ride away is one thing. Being under one roof, especially in the Northeast … you really need that in order to be competitive.
PBN: How many rooms are there now and how many will there be?
PROCACCIANTI: There are 364 rooms there now and we’ll add 200 to that. We’ll also have office space and the first floor is going to be retail. We’ve talked to ESPN Zone and some other really big time restaurants. There will also be 60 residences at The Westin. That’s so exciting to bring that here – ‘For Sale’ living into a high-rise in Providence.
PBN: Why has it taken so long to get another hotel built in Providence?
PROCACCIANTI: It’s difficult to build a true, full-service hotel. And in the Northeast it’s more difficult. The weather is a factor and the costs for land. I think that having the convention center really ramped up now has helped.
PBN: There are so many apartments coming on line in the city. Is this competition or would you rather see more people coming to live in the capital city?
PROCACCIANTI: Absolutely, we want to see that. It’s happening. … We’re going to announce another large project in Providence in a short amount of time. It’s going to change the city and change what happens at night. It’s going to change the skyline. We’ve opened up two Shula’s restaurants and we’re working on a third right now. We’d like to open a fourth in Providence.
PBN: You’re not talking about a Shula’s at The Westin, you’re looking at that for somewhere else in the city?
PROCACCIANTI: That’s right.
PBN: Are the hotels in Providence hitting the numbers they should be in terms of occupancy, compared to those in other cities?
PROCACCIANTI: Yes, with both the occupancy rates and revenue per room. It’s a very strong, competitive market. Adding this hotel next to the convention center is going to enhance what is already there.
