RIHA Buys Providence Property for Hospitality Training Center

A historic Providence manufacturing building is slated to become a hospitality training center after being purchased for $1.8 million by a nonprofit division of the Rhode Island Hospitality Association.

The property at 91 Friendship St. was acquired from Johnson & Wales University, which has been selling off real estate to address operating deficits and declining enrollment. The Rhode Island Hospitality Education Foundation, an arm of the association, used $1.4 million in savings accumulated over approximately 40 years and a $600,000 loan from the city to secure the site, according to real estate records.

The ambitious plan involves transforming the 1888-era structure into a multi-stage learning hub designed to address the chronic labor shortages facing the service industry. The project, which represents the largest investment in the trade group’s history, remains in the early stages of development, The Boston Globe reported.

“What I would really imagine doing is using this building we bought to create a … learning experience for the industry to benefit from, and for the Association to do something that no one else is doing around the country,” said Farouk Rajab, president and CEO of the Rhode Island Hospitality Association.

A two-phase vision for hospitality training

The redevelopment is expected to move in two distinct stages to build a pipeline of skilled workers for local hotels and restaurants. The first phase, targeted for completion by early 2028, aims to establish a 20-seat dining room featuring an open kitchen. This space would serve as a restaurant incubator where aspiring entrepreneurs can test business concepts without the financial burden of traditional rent.

The second phase, projected for early 2029, would see the building transition into a teaching hotel. This would allow students to engage in hands-on training regarding hotel operations, providing a direct response to the exodus of workers that occurred during the pandemic.

The scale of the project remains unconfirmed. While Rajab noted it will be a multimillion-dollar redevelopment, the exact costs are pending a proposal from DiLeonardo International, a Warwick-based architectural and design firm. To fund the work, the foundation intends to launch a capital campaign targeting hotel brands, local businesses, banks, and government programs.

“The most successful element of any hospitality business is human capital,” said Farouk Rajab. “That starts with well-trained individuals.”

The shifting real estate of Johnson & Wales

The sale marks a significant milestone in a decades-long divestment strategy by Johnson & Wales University. The institution has been shedding underutilized assets to shore up its finances as its student population has changed. Enrollment reached a peak of 17,294 in 2011, but has since dropped by more than half.

The university’s contraction began in earnest in 2020 when it announced the closure of its campuses in Denver and North Miami. Since then, the school has been unloading various Rhode Island holdings. The building at 91 Friendship St. had served as administrative space for the university since its purchase in 2002, housing teams such as general counsel and institutional research.

A university spokesman told The Boston Globe that the sale of the property represents a strategy of unloading real estate that is nearly complete. Chancellor Mim Runey expressed satisfaction with the transition, stating she was pleased to pass the building to “another great educational organization.”

Regulatory and financial hurdles face the teaching hotel plan

While the vision is expansive, the plan for a teaching hotel faces regulatory and financial obstacles. The building, which once housed the Horace Remington & Sons Company manufacturing fine jewelry supplies, is not currently permitted to operate as a restaurant or a hotel. Converting a historic manufacturing site into a high-traffic hospitality hub will require following complex zoning and building codes.

There is also the question of funding stability. Rajab admitted that the foundation is currently 100 percent reliant on fundraising to move forward. If the capital campaign fails to meet its goals, the association has a contingency plan to occupy the building and lease the upper floors to other organizations.

The association currently maintains enough cash reserves to maintain the building for two years. The success of the project hinges on whether the local industry and philanthropic sectors view the training center as a necessary solution to the regional labor crisis.

The current plan for the building aims to complete the restaurant incubator phase by early 2028.