Sioux City and Conor Acquisitions have reached an agreement, pursuant to which Conor will buy and renovate Sioux City Hotel.
Under the terms of the agreement, Conor will buy the 193-room downtown hotel for $4m and spend another $6.5m on renovations and convert it to a national brand.
The National Hospitality Design Group has been contracted to renovate the 12-storey hotel.
The Associated Press cited National Hospitality Design Group’s managing partner and design consultant Jonathan Chang as saying that three national chains are being considered for the branding.
Additionally, Sioux City will also invest $1m for the hotel renovation in addition to providing a property tax rebate and designate parking in a city ramp.
The Sioux City council will vote to amend the downtown urban renewal plan to include the hotel and issue a 30-day notice to sell the property.
The deteriorating condition of the hotel has been blamed for a drop in event bookings at the adjacent city-owned Convention Center, which is linked to the hotel by a skywalk.
Convention Center sales manager Jonalee Jackes said, "The convention center gets rave reviews. We do great."
"But people say they won’t come back until we do something with the hotel," Jackes added.
Choa Hope, the group which previously owned the hotel, hired an investment firm to market the property, leading to the latest planned purchase, Associate Press reported.