WINSTON-SALEM, NC -- The old RJ Reynolds building in Winston-Salem will not become a hotel and restaurant.
Developer Dennis Quaintance announced today the building would not produce enough revenue to justify the $50 million investment his company Quaintance-Weaver had planned.
"To invest 50 million dollars here we needed to really be sure that it made good sense, and we're a little bit short on the revenue side of the equation," Quaintance said.
Quaintance specified that there was a gap between what the hotel would have been able to charge for a room per night to recoup the investment and what amount per night the market would bear.
"We might've been able to fill it but not at a high enough average rate," Quaintance said.
An RJ Reynolds Tobacco spokesman said the company still owns the building and is looking for a new development partner.
The building stands on the Northeast corner of Main St and 4th St. It opened in 1929 and closed in 2010.
It's estimated tax value is between $20 and $30 million.