New Roosevelt Inn And Suites Owner In Williston -- May 12, 2017

From The Williston Wire:

While some hotel owners have been getting out of the Williston market, one is buying in.

Marty Mulder and his family, who have owned and operated the Roosevelt Inn and Suites since 1998 in Watford City, have bought the Marquis Plaza Inn & Suites in Williston.

The Roosevelt was a fixer-upper at the time, and so is the Marquis, Mulder said.

Nonetheless, the new owners are already attracting a clientele with savvy online media use and a canny understanding of what makes customers repeat their visit. They had 15 visitors Tuesday night, though they have hardly been open a full week. These were a mix of oil industry workers and travelers.

Hyatt House To Open in Minot This Spring

Link here to Minot Daily News.

• 130 suites
• upscale
• only Hyatt House in North Dakota
• 30 motels/hotels in Minot now
• twelve have opened in past twelve months; the Hyatt House is the twelfth
• two more motels/hotels under construction in Minot

Another Example of the Bakken As ... Laboratory: Alexander Hotel Will Be Ready For Occupancy -- 90 Days After Ground-Breaking

Updates

November 25, 2012: update.

Original Post

What a great story, sent in by a reader, from the Bismarck Tribune:

The Shut Eye Hotel in Alexander will be done in 90 days rather than the typical hotel construction period.

The hotel is being built at 205 29th St. N.W. by Banyan Investment Group, a hospitality company, and Proteus On-Demand builders.

The hotel is made up of modular rooms bolted together and wrapped in a steel skin. That’s what makes it so fast to build, but guests will be unable to tell it’s made up of multiple structures, said Chris Cooper, vice president of special projects for Banyan Investment Group.

Cooper also said the hotel structure is engineered to stand up to wind and snow. [Let's hope.]

Even though the hotel is not being built to be temporary, it can be relocated if necessary because of it’s modular design, Cooper said.

For newbies: Alexander is about halfway between Williston and Watford City. I posted a photo of a sign announcing a new truck stop just south of Alexander, maybe a year ago. 

There certainly is a sense of urgency in the Bakken. This would not happen in Boston.

WSJ Photo of Hampton I & S in Williston, page C12

Maybe it will be on-line. Google hotel construction picks up

Yup, it's there. Cool.

Well into the story:

A similar hotel boom is unfolding in a far different locale: rural communities atop oil-shale formations being drilled for oil and natural gas. Of the top 10 US markets for hotel construction in the past year, three are in oil-shale ares: North Dakota, with 2,088 rooms under construction; the greater Corpus Christi area in Texas, with 1,491 rooms; and rural Oklahoma, with 1,242 rooms. 

The article goes on:

Braxton Development, based in Bozeman, MT, built Microtel Inns in the small North Dakota towns of Williston and Dickinson last year and opened a Hampton Inn in Williston last August.

The article mentions that this could "be a bubble set to pop" especially if the federal government cools the drilling industry (through fracking regulations).

Lots and Lots of Stuff To Talk About: Minot (Again); "Band of Brothers"; Rigs In ND; Soybeans; 60 New Sand Mines in Wisconsin

Wow, I am energized this morning. Too much "stuff" to talk about. I'm not sure if I can get it all done in the two hours I've been allotted. And I'm not sure whether to do multiple posts or one long post. So, we'll see as we go along.

175 Rigs In North Dakota: Adequate

First, I'm getting a lot of comments about the number of active rigs in North Dakota. My hunch is that 175 active rigs in North Dakota will be more than enough to keep me busy posting, and that 175 active rigs will be more than enough for current operators to reach their production guidance.

Having said that, there is one key data point regarding active rigs that no one has yet mentioned (as far as I can tell). There are probably several additional important data points not mentioned, but the one I'm thinking of is very, very basic and has to do with recent rumors about well design. I will leave it there for now, date-stamp this entry for bragging rights, and then come back to this later.

United Pulse: On Lentils and Split Peas in Minot

Part of the reason I am so energized has to do with the United Pulse story I posted a few days ago.  I had forgotten that I had posted a story this past January about United Pulse expanding into Minot. From that post:

The planned United Pulse Trading facility will be located at Minot’s Value-Added Agricultural Complex, which features North Dakota Port Services Inc.  as an anchor tenant. NDPS provides, through Burlington Northern Santa Fe Logistics and BNSF’s Northern Tier Intermodal line, container services to the complex through its facility adjacent to BNSF’s main-line switch yard featuring daily service and four-lane highway access.

There is simply too much to keep up with. A reminder to newbies: although this blog site is "all bakken all the time," in fact, the name of the blog, "Million Dollar Way" has nothing to do with the Bakken per se. In fact, if you go back to my roots and to the general tone of the blog, particularly in the early days (and the first blog which was deleted), there are good reasons why stories about lentils are important to me.

Speaking of lentils, leads me to soybeans. Did  you see this story in the print edition of the LA Times? Neither did I. But fortunately the on-line edition links it: China worries about social fallout of soybean oil price jump. North Dakota is a large producer of soybeans. Like the rest of the nation, the drought will affect North Dakota's soybean crop, but perhaps not as much as feared.

There are some soybean fields that still looked pretty good in Minnesota and North Dakota ahead of August pod setting. As of July 16, Minnesota’s soybean crop was ranked 65 percent good to excellent, 26 percent fair and 9 percent poor to very poor.

North Dakota’s soybean crop was ranked 62 percent good to excellent, 32 percent fair and 6 percent poor.

Across the U.S., the soybean crop was rated 34 percent good to excellent, 36 percent fair, and 30 percent poor to very poor as of July 16.

Based on anecdotal reading of the regional newspapers, it appears the drought did not affect North Dakota as badly as the rest of the nation, but that is anecdotal, and I do not know.

CarpeDiem: Railroads Re-Energized Due to the Bakken

CarpeDiem has a nice piece on railroads and the Bakken.  

60 new sand mines in Wisconsin supporting the oil patch in North Dakota. Not too shabby.

The paragraph I enjoyed the most:

In two years, Union Pacific recorded a 265 percent increase in frac sand shipments. The railroad has rebuilt interchanges in Wisconsin, lengthened track at a Mankato rail yard and will lengthen another track this year. The company built a side track at Bricelyn, Minn., lengthened several tracks at a rail yard in Council Bluffs, Iowa, and is considering four more yard improvements in Wisconsin and Iowa.

After Warren Buffett bought Burlington Northern, one of my best investments ever, I started accumulating Union Pacific. For years, I had trouble deciding between BNI or Union Pacific, but Warren's purchase made it easier. I kept BRK-B and started accumulating Union Pacific. [Disclaimer: this is not an investment site; make no investment decisions based on what you read here. This is simply information, education, and entertainment.]

I never fail to waste my time reading the comments. Based on the comments, I am still amazed how uninformed some folks are.

Hotel/Motel Construction in Minot, North Dakota

Overbuilding? No

Interestingly, two different readers sent me comments about new motel/hotel construction in the oil patch.

One noted:

Minot is only running about 85% occupancy and they are adding 50% to inventory, so it tells me they will drop to the 60% range near term.

My reply, cleaned up a bit:

You know, the interesting thing is this: folks don't add "quality" to the mix.

When I was in Williston last summer, I went out to visit a "motel." It had been there since the 1950's. It appeared some years ago to have been either shuttered or condemned. How it was brought up to code for the boom, I do not know. But the "in-the-right-place-at-the-right-time owner" opened it back up, and immediately reached 120% occupancy. 

That "motel" with 120% occupancy raises the average, but as soon as a "nice" motel is built next door, and occupancy across Williston is 95%, the aforementioned "motel" will close. 

There are too many variables to simply look at occupancy rates to determine if things are being overbuilt. 

When I see the new construction stories coming out of Minot, I don't see "overbuilt." I look to see what the developers are seeing: what do they see coming into Minot three to four years from now. I guess the United Pulse story, the Port of North Dakota story, and the BNSF yard upgrade, etc., got me really energized about Minot.

One of the variables has to do with measuring occupancy rates. Is the "85%" occupancy rate the annual average; or, is it a snapshot in time? Are rates raised during periods of 100%+ occupancy such as during the Hostfest? Could more affordable hotels result in more men living in crew camps moving to the city? What hotels/motels currently operating are scheduled for closure, or would have closed had there not been a boom or a flood? These are all rhetorical; I don't plan to turn the blog into "All Minot, All The Time."

For a list of new hotels and hotels under construction in Minot, click here.

Hotel/Motel Construction in Minot, North Dakota
Developers: Speechless

So, I'm writing/thinking about Minot hotels and motels, and then this story pops up, sent to me by Don: 

The building of hotels in Minot has been so extensive over the last several months that the a total of new rooms available, or about to become available, changes almost daily. Minot's hotel growth is nothing short of astonishing, and not just for North Dakota.

"I can tell you everybody we talk to in the CVB world, the hotel developers and long-term planners, are just speechless. They are not seeing this anywhere else in the country. This is so rare. Nothing is growing as rapidly as this," said Wendy Howe, Minot Convention and Visitor's Bureau.

Go to the link for the full story and the numbers. Regional links break early and break often. I may do a separate post on this story; the "fact box" at the site ... well, it leaves me speechless.

"...are just speechless. They are not seeing this anywhere else in the country." Wow, we've been blogging about this and talking about this for three, four, or five years. I guess if the mainstream media only reads the NY Times, a few things get missed.  [Despite the admonishment: if you have a business, you didn't build it.]

Band of Brothers

Don also sent me a nice human interest story about the "band of brothers," called roughnecks.  Cowboys and roughnecks: North Dakota, Montana, Wyoming, Utah, and a few other places.

CO2 Emissions At Lowest Level in 20 Years
NY Times Spin: Okay, Now It's Methane We Should Be Worried About

The NY Times "Green" section noted that CO2 emissions are at their lowest peak in 20 years. That was noted some days ago; it took awhile for the NY Times to figure out how to respond. So, what do they do? They shift the discussion: back to methane. That, too, is an overworked story. I post it here only for archival purposes. But, and this is the huge story: the NY Times did NOT disagree that CO2 emissions are at their lowest peak in 20 years, and they explicitly or implicitly or directly or indirectly said it was all due to the wonderful oil and gas industry for forging ahead, despite governmental obstacles, permitoriums and demagoguery, to press on with fracking to provide natural gas so cheap, the aforementioned wonderful oil and gas industry is stacking natural gas rigs (see next blurb). Wow. So many story lines. But the NY Times now "sees" methane as the next threat. Ronald Reagan (RIP) talked about cows and methane a long, long time ago. There are rumors that President Obama will appoint a "Methane Czar" to monitor methane emissions.

What Was That Saying? Swords Into Plowshares?

Speaking of the president: someone told me that the Obama administration is buying these stacked natural gas rigs and converting them into slicers and dicers.

That's All, Folks

Okay, I'm going to stop here. Re-group. Start a new post: Enbridge, Saudi oil, Mexican oil, Montana rigs, etc., all stories / links that Don has sent me. It's going to be a long, long day. This post has not been proof-read; I assume there are typographical errors and broken links. I will sort them out later. 

Random Note on Hotel/Motel Construction in the Oil Patch

From KXNews:
Statewide since 2010--North Dakota has seen a large increase in the number of Hotels being built.

• In 2010: eight (8) new hotels/motels
• in 2011: twelve (12) new hotels/motels; nine (9) in western North Dakota
• 2012, through first half of the year: twenty (20) new hotels/motels
• coming: thirty-four (34) new hotels/motels publicly announced or under construction in western North Dakota

Total: 74 and counting.

I don't know about you, but after awhile I start to become "numb" to these numbers. But, if you step back, catch a breath, and really look at these numbers, it's incredible. I thought we had seen the boom in hotels/motels, and it would end this year, but halfway through the year, almost double last year's (20 vs 12), and then we see the next number: 34.

I still find it quite incredible. A big thank you to KXNews for tracking this.

More Lodging To Break Ground --- Radisson Hotel, Country Inn and Suites; Update on Crowne Point Lodge

Minnesota-based Complete Hospitality Management, link here:

• working with Granite Peak Development to build a 160-room Radisson Hotel at Sand Creek Town Centre
• working with Granite Peak Development to build a 240-room Country Inn and Suites at the Bakken Industrial Park; will include a restaurant specializing in buffalo wings
• partnering with Annabelle Homes in Tioga to manage the 240-room Crowne Point Lodge and Suites; Annabelle will break ground June 1; 38 rooms will be left open for tourists;
• considering locations at 13-mile corner north of Williston and in Ray

Lodging investments are being paid off in about 32 months instead of the industry norm of six to 15 years.

Four More Motels in Williston -- The Bakken, North Dakota, USA

Link here.

It’s a town of 15,000 people and growing with an industry that’s also growing rapidly, but there’s very little infrastructure to support the growth,” says Art Cahoon, chairman & CEO of Nakota Development, which has two Value Place properties under construction (opening in July) and two more in development in Williston. It’s also working on the development of a 470-unit apartment building in the area.

Nakota is one of the lucky (or shrewd) developers that was able to wrap up land sites before the boom economy took hold. “We figured it was most important to secure the scarce resource—the land—and then proceed in developing the hotels and finding the right flags,” says Cahoon. The firm is building two Value Place hotels side by side at each site, with 124 rooms (the chain’s standard prototype) in each hotel. “We picked Value Place because of its operating model and because the profile and amenities match the workers who will be staying there.”

From A Reader: Luxury Suites Coming To Downtown Williston? -- The Bakken, North Dakota, USA

Updates

December 4, 2012: for some reason we were led to believe the Winterton Suites were going to be in downtown Williston. See post below and all the comments. It turns out Winterton Suites is located at 340 26th Street East if I understand the website correctly. This is on the northeast side of Williston, but again, I have been wrong before when trying to locate new facilities on Google maps. Regardless, Winterton Suites says they are now taking reservations for their Williston motel.

 

Original Post

From a reader:

Has anyone heard of Winterton Suites? They have a luxury suite (small hotel) in Roosevelt,Utah. I see they are planning a downtown Williston hotel...with only 25 rooms and supposed to be ready by spring of 2012, I wonder if it is going to be a rehabilitaded building somewhere downtown? Here is the link announcing the coming soon to Williston.
http://www.wintertonsuites.com/

Does anyone know anything more? Any links to press releases?

Only 25 rooms makes me think they might be renovating the Plainsman Hotel in downtown Williston, an iconic landmark, but sometimes renovating is more expensive and more work than simply putting up a new building.

Luxury suites for CEOs, upper level managers of the many oil and oil service companies in the Williston area?

If this is true, luxury suites downtown, it speaks volumes about where we are in the timeline of this boom.

Permits for Two More Hotels/Motels in Williston -- The Bakken, North Dakota, USA

Link here.

...  a new hotel (MainStay Suites), a 270-unit apartment complex and an extended stay project by Strata Estate Suites. 

Value Place Extended Stay Hotel Has Broken Ground -- 124 More Rooms Next Spring -- The Bakken, North Dakota, USA

Williston Herald link here.

Another housing option is set to open in spring north of Williston. Construction has begun on a Value Place extended stay hotel. Ground was broken on Sept. 14, and the hotel will be finished in late spring.

This hotel is a few miles north of Williston on US 2 & 85.

The same developer will build a second Value Place hotel at the proposed Sandy Creek Retail Center west of Williston.

For newbies: I've lost count of all the new motels and hotels that have gone up in Williston in the past two years, but I assume it's about an even dozen and there's still a shortage.

Two More Motels: One in Stanley, One in Watford City -- Bakken, North Dakota, USA

This was announced awhile ago, but I missed it. From the Williston Wire:

Dakota Hotel Ventures of Rapid City South Dakota announces two new Microtel Inn and Suites in North Dakota: a 77-room Microtel Inn and Suites in Stanley, and one in Watford City. The Stanley motel is scheduled to open in early spring.

I drove around Williston again last night in some of the new housing developments, and past the new 145-apartment unit complex near Wal-Mart. I am convinced that by the end of 2012 the housing shortage in the Bakken will pretty much be alleviated.

The majority of folks in the man-camps will not be buying homes, and it's hard to imagine that the housing supply won't match demand. The biggest pressure will be on apartment units as more of the man-camp folks want a bit more freedom. The downside to moving out of the man-camps is the amenities provided by the man-camps: 24/7 dining, laundry, and room service.

Motels Under Construction in Williston -- Bakken, North Dakota, USA

I am aware of the following three four motels under construction in Williston:

• Holiday Inn: next to the airport with "all" the other motels; the structure is pretty much complete; interior work now needs to be completed
• Hampton Inn and Suites: next to the hospital; top soil has been moved and staked
• Motel 6: frame, I believe, is up; it's northwest of the bypass; not as far along as Holiday Inn but well ahead of Hampton Inn
• Add: Best Western on the north side of Wal-Mart Super center. They have already poured the foundation. They said it will be a 100-room motel, and plan to expand another 50 rooms next year according to the Williston Herald (see first comment below). The link is pretty cool, but will change over time.

See previous update of status of motels, with photos, June 8, 2011.

Best Western Plus Inn and Suites Breaks Ground -- Williston, North Dakota -- Bakken, North Dakota, USA

Link here.

99 rooms.

North of Wal-Mart, north of Williston on "2 & 85" or what is commonly referred to as the "Million Dollar Way."

Motel - Hotel Building Activity -- Williston, North Dakota -- Bakken, USA

Updates

October 1, 2016: two hotels to close -- the Marquis and the Missouri Flats.
 

Original Post

 

Some random photos of the Williston hotel/motel complex just a five-minute walk from Sloulin Field, Williston International Airport.

Two of these motels were built during the last boom. Five of the motels/hotels were build in the last couple of years, and two more motels/hotels are under construction. I believe the Microtel opened today. And then, of course, one of the motels is adding 84 additional rooms.

Here are the photos, in no particular order:

Missouri Flats

On "2 & 85" north of Williston, just east of the city airport

Missouri Flats

West of Williston on the west side of the bypass, near Grandma Sharon's, across the road from the hospital

Except for the Marquis Hotel, all of the above hotels/motels are within about five-minutes walking distance from the airport.

The International Inn was built during the last boom.

Built earlier in this boom: the Marquis.

Others up and running: HomStay, Missouri Flats, and Candlewood.

Microtel opened this week.

Two more being built. See comments below: the motel under construction in the photos above will be the Holiday Inn Express. Apparently, the hospital hotel will be a Hampton Inns. See comments below.

International Inn being added on to.

Does that make about eight motels/hotels within walking distance of the airport?

The Marquis is just up the road on the west side of the bypass.

The hospital will be building its own hotel, the Hampton Inn and Suites.

The reason the parking lots look relatively empty is because these photos were taken during the day when oil workers are out in the field. 

The El Rancho is the iconic motel in Williston; it is located at the head of the "Million Dollar Way." It is clearly one of the nicer motels in Williston and may be the only one that still takes reservations on a daily basis. Most (if not all the rest) are completely contracted out to oil companies or oil-service companies.

Another motel going up is a Motel 6 which will not be near the airport. It is on the bypass near Herman oil. Not everyone is happy with this location but apparently it will be built. Link here.

Click here for website for the new Williston Hampton Inn and Suites.

Holiday Inn Coming to Williston -- Bakken, North Dakota, USA

88-room Holiday Inn to be built at 415 38th Avenue West.

That's where all the other major motels and inns are located in Williston -- just north of the airport, to the west of Million Dollar Way.

With that news, I wonder if I've been too tepid regarding my thoughts about the Bakken.