Take a look at Hilton’s multi-million dollar plan for the iconic Clover Island Inn

The incoming owners of Kennewick’s Clover Island Inn will start transforming it into a Spark by Hilton in about a week.

CII Hospitality LLC, a limited liability company associated with Reno-based Kishan Group, expects to take possession of the 150-room hotel on April 6.

It will immediately begin final discussions with Hilton Hotels to renovate the aging property into the company’s new “Spark” brand.

Kishan is buying the property from Clover Island Development Inc., which has owned it since 2001.

Terms of the deal are not yet public, but it required the approval of the Port of Kennewick, which owns the land under the hotel, 435 Clover Island Drive.

As expected, the port’s elected commission enthusiastically approved a new, 50-year land lease with Kishan Group at its regular business session Tuesday, March 26.

Saved from bankruptcy

The current owners, led by Bill Lampson, president of Lampson International, bought the 1977-built hotel out of bankruptcy.

Lampson told port officials his group consists of business people who wanted the hotel to stay in business but did not bring expertise in the hospitality industry to the project. He called it a profitable property thanks to its manager and the community support it enjoys.

The inn relies on conventions and sports groups to fill its rooms.

But after 20-plus years, Lampson said it was time for hospitality experts to take over.

“Our ownership team is getting a little long in the tooth, including myself. We think it’s time to move on,” he said.

The Kishan Group is led by principals Aalbir “Bal” Gosal and Gurdeep “Zeal” Baines, CPA. The firm owns and redevelops hotels in Alaska, Florida, Louisiana, Montana and Nevada in addition to a Best Western Plus in Silverdale, Wash.

Gosal told the commission he was reluctant to invest in the Tri-Cities because of the large number of hotel projects being built here.

Million dollar views

But Clover Island’s waterfront location and million-dollar views of the Columbia River convinced him it made sense. So, he joked, did the bottle of wine Lampson served at their first dinner.

“I think Bill got me drunk the very first night and I couldn’t say ‘no’ to the project,’ he said.

He is undaunted by the building’s advancing years. The Lampson team has taken excellent care of the structure and that it has “good bones” he told the commission.

Hilton Hotels created a property improvement plan for the Clover Island Inn that provides an exhaustive look at the steps needed to bring it up to the brand’s exacting standards. Hilton, he cautioned, won’t let it open until it passes a thorough inspection by a team of seven.

Once it’s part of the system, the property will tap into the Hilton Honors loyalty program, which boasts 100 million members.

Spark by Hilton is a new, budget-friendly Hilton brand that does not yet have a presence in Washington. Gosal said about six Sparks have opened since the brand formed about two years ago and deals are in place to open 100 more.

While the details are still being sorted out, Gosal told port officials it should retain most of its current amenities, including its swimming pool. Pools are optional for Spark hotels. But a resort-like location demands a rich list of amenities, he said.

Gosal said the company’s construction arm will spend about 18 months renovating the property, starting with the first 74 rooms this winter. It could be fully converted by May 2025.

He estimated the cost at $2.6 million, but said that is a preliminary estimate.

The conversion will touch every aspect of the property, from rooms to common areas to the parking lot.

“It’s going to need a lot of work,” he said.

Gosal said the inn will operate as normal through the summer season, its busiest.

Turnaround experts

Kishan Group is focused on hotels and specializes in taking on older properties, often tired mid-century designs that don’t attract modern audiences. It matches locations to brands, then spends about 18 months on renovations.

The land lease approved by the port includes an initial 20-year term with three options to renew for 10 years each.

As long as Kishan complies with the lease, the port can’t cancel the agreement. Kishan will pay about $6,000 a month or $72,000 a year, with annual 3% increases.

The new lease obligates the owners to carry out the improvements spelled out in the Hilton plan, even if it ends up developing the property with a different brand.

This isn’t the first time Lampson’s group of investors has tried to sell the hotel.

In 2022, it agreed to sell the building to Portland-based Fortify Holdings.

The controversial developer planned to spend $20 million to convert its rooms into 180-200 micro apartments. The deal foundered with the Port of Kennewick commission voted 2-1 against selling the company the land under the hotel rather than leasing the property.

The current commission voted 3-0 to cancel the old Lampson lease and enter a new one with Kishan once the sale closes.

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