Inn of Gallup buyout in doubt
Navajo Nation Council waffles on buying local hotel

By John Christian Hopkins
Staff writer

WINDOW ROCK — Every business deal has its ins and outs, but the jury is still out on whether or not Navajo Nation Council wants to buy the Inn of Gallup.

A bill to authorize purchase of the property was tabled during a special Council session.

“I don’t believe it will make money,” Delegate Omer Begay Jr. said.

But, the bill’s sponsor — Delegate George Arthur — is convinced otherwise. He sees this as a golden opportunity for the Nation.

“This is primarily a new area we’re going into,” Arthur said. “For me, it’s somewhat exciting to bring (to Council) a concept where we could bring in new revenue.”

Arthur’s legislation calls for $6.6 million for the inn, with an additional $2.6 million for property upgrades over two years. The money would come from the Land Acquisition Fund.

Though he has operated the property — at 2915 West Highway 66, in Gallup — for 29 years, growing health concerns have moved him to sell the property, owner Hans Pircher said.

Pircher bought the 6.6-acre property in 1979 for $5.5 million. The Inn of Gallup, formerly a Holiday Inn franchise, is a 212-room hotel, with convention/meeting rooms and full-service restaurant.

With improvements and inflation considered, the property could be expected to sell for $15 million, he added.

“It’s a great deal for the Nation,” Pircher said. “Not so great for me.”

But Delegate Peterson Yazzie disagreed. In real estate, location is everything — and this hotel isn’t in a prime spot, Yazzie said.

“I don’t think this is a good investment,” he said.

He has heard that the inn has not made a profit in any of the past three years, Yazzie said.

“I kind of think we’re buying a 1968 Toyota Corolla, and the owner is throwing in new tires and an oil change,” Begay said. “It’s not the right thing to do.”

The key question is whether the property would bring in enough revenue to justify the purchase, Delegate Larry Noble said.

“If it’s a Toyota Corolla or a Hummer, it doesn’t matter,” Noble said.

Another issue was the inclusion of a liquor license with the deal.

Though Pircher said the inn comes with a valid liquor license, the Council needs to see proof in writing, Delegate Edmund Yazzie said. He wasn’t even sure if a liquor license could be passed on in a property transfer, he said.

And that’s not even touching the issue if the tribe wants to get involved with selling alcohol, knowing how much it has harmed Navajo people, Edmund Yazzie said.

“We need to give it due diligence, and make sure the Navajo Nation is not being taken advantage of,” Delegate Leonard Tsosie said. The Nation doesn’t want to get into another situation like the BCDS business in Shiprock, Tsosie said.

The Nation stands to lose millions because due diligence was not given to the project, he said. “We need to see some numbers. There’s talk that it’s a rundown hotel.”

Also, the latest appraisal is from 2006, Tsosie added.

A lot has happened to the economy since 2006, Delegate Raymond Maxx said.

“And it’s all for the worse,” Maxx said.

He suggested the deal might be received better if the price were lower, like $5.8 million.

But Tsosie remained unconvinced.

“We all know from our trading post days, that the owner would sell a horse and say it was in fine shape, and when you got it home, it limped,” Tsosie said.

John Christian Hopkins can be reached at Hopkins1960@hotmail.