By Roland Murphy for Arizona Builder’s Exchange
Despite ups and downs around the country due to a variety of economic and environmental factors, the hotel development sector in Arizona continues to remain comparatively strong, as evidenced by two new planned Holiday Inn-related developments around the state: A Holiday Inn Express in Phoenix and a traditional Holiday Inn in Page.
The AZBEX Database currently lists more than 100 projects in various stages of planning and development around the state in the Hospitality – Hotels/Resorts/Casinos sector. According to a release from CBRE Hotels Americas Research distributed on Hotel News Now, the U.S. hotel industry can expect to see a 10th consecutive year of growth in 2019. All 60 major markets CBRE tracks are expected to see increases in Average Daily Rates over the year.
Economic forces may catch up with the industry after 2019, the announcement states. “CBRE is not forecasting any economic or lodging industry recessions through 2022. However, industry growth is forecast to curtail beyond 2019. CBRE-EA sees higher interest rates, equity market corrections, credit-market problems and some shrinkage in employment as risk factors occurring in late 2019 and 2020 that adversely will affect the lodging industry in 2021. Fortunately, the economic slowdown is expected to be relatively mild and short.”
Page Holiday Inn
The proposal in Page will be for 120 rooms, according to plans submitted to the city. The building will be four stories with a 20KSF footprint on a roughly 4.6 acre parcel. The site is located at South Lake Powell Boulevard and Highway 89.
The land is currently vacant and undeveloped, according to the site assessment. Surrounding uses include the Lake Powell National Golf Course to the north, the highway and vacant property to the west, a Maverik gas station and convenience store to the southwest, and various other hotel, restaurant and commercial operations to the south.
In October, property owner Danny Chao requested to put the minimum setback at 20 feet and the maximum building height at 55 feet. The land is currently zoned Planned Development Commercial, which allows for hotel uses. The city’s zoning engineer recommended approval for the request to the Page Planning and Zoning Commission.
Pending all necessary negotiations and approvals, construction is expected to begin in January and will take about 14 months. According to information compiled by the AZBEX Research team, there was only one bidder for the general contracting opportunity, and terms and pricing are in negotiations. The GC’s proposal is due in late December.
The owner is New West Hotels, LLC. Rosenberg Associates is the structural and civil engineer. Van Boerum & Frank INC is handling both mechanical and electrical engineering. Architect is Campbell & Associates Architects LLC.
Holiday Inn Express at Anthem
On December 6 the City of Phoenix Planning Commission will hear a proposal on behalf of owner Tim Rutjes/AAZH, LLC for an 80-room, three-story Holiday Inn Express on three acres at North 41st Drive and West Fortune Drive in Anthem.
Among other amenities, the proposed development will feature a screened outdoor pool and patio area with 50 percent coverage.
The currently vacant site is bordered to the north by motorcycle sales and auto repair; to the south by a commercial park and warehouse; to the east by vacant land, hotel and self-storage and truck rental operations, and to the west by commercial retail and services.
The sole written statement of opposition came from a nearby business owner who claimed his business, a shelf manufacturing concern, would be negatively impacted by the hotel’s height and the possibility of guests parking large vehicles on the street, which would restrict traffic.
In their October 29th recommendation report, city planning staff found the development will be an enhancement to the area, is compatible with surrounding uses, and the proposed 40-foot height will not negatively impact other properties.
AAZH, LLC is the owner. Civil engineering is by Lightowler Johnson Associates, Inc. LJA also furnished the site plan and initial elevations.
