STATE LAND COMMISSIONER SELECTS HOSPITALITY GROUP TO TAKE OVER GARRETT’S DESERT INN

SANTA FE, NM – After months of anticipation, State Land Commissioner Aubrey Dunn today announced GreenTree Hospitality Group, Inc. and project partner Peak Hospitality have been selected to redevelop and lease the property known as Garrett’s Desert Inn in historic downtown Santa Fe.

GreenTree Hospitality and Peak Hospitality together were one of two qualifying proposals and submitted the highest and best offer of $300,000 annual base rent, a one-time $100,000 bonus bid, and five percent of annual gross revenues. The term of the lease is 20 years, with two optional 20-year renewal periods. Estimated revenue earnings over the initial 20 year term is just over $10 million. Revenue earned from the lease agreement will support the University of New Mexico, the sole beneficiary.

“I welcome GreenTree and Peak to Santa Fe and appreciate their commitment to create a special destination for visitors and locals alike,” said Commissioner Dunn. “I also want to recognize Cochiti Pueblo for being open to the land trade which returned their ancestral lands and allowed us to acquire income-producing property for the state land trust.”

Commissioner Dunn and the State Land Office acquired the 2.7-acre property, located at 311 Old Santa Fe Trail, in September of 2016 by way of a land exchange with Cochiti Pueblo. Commissioner Dunn returned 9,000 acres of ancestral lands, formerly the Dixon Apple Orchard, to the pueblo, and in exchange Cochiti purchased the 60-year old inn from the Catron Family Trust and transferred ownership to the State Land Office.

According to the project proposal, Peak Hospitality will “dramatically transform the existing property with a sense of responsibility and respect” for the history and tradition of Santa Fe’s downtown.

Redevelopment plans include: improving curb appeal, replacing the portico, and updating the lobby, main building, fitness center, business center, swimming pool, and guest rooms – and Santa Fe Bite stays.

The property will remain open during renovation.

Oil, gas, and mineral production, ranching and farming, and commercial development on State Trust Lands support public schools, seven universities, New Mexico Military Institute, New Mexico School for the Deaf, New Mexico School for the Blind and Visually Impaired, three hospitals, correctional facilities, water conservation projects, and public building construction and repair. In fiscal year 2017, the State Land Office collected $664 million from lease payments, oil and gas lease sale earnings, rights-of-way, permits, interest, fees, and oil, gas, and mineral royalties.