"We do a lot of business with Hilton," Navin Dimond, CEO of the privately held Stonebridge, tells GlobeSt.com. "We have 20-plus hotels with Hilton flags. We have a very good relationship with them and really like the brand."
He tells GlobeSt.com that a certain number of people will choose Hilton because they are loyal to the brand. "It's been many, many years," since a Hilton has been Downtown, he says. The $35-million hotel will open in the second quarter of 2007. Dimond estimates average room rates will range from $139 to $199.
There are a number of other hotels on the drawing board in Downtown Denver. When asked if the Downtown market could be in danger of overbuilding, Dimond tells GlobeSt.com he didn't think so. "I think there is sufficient demand being created," Dimond says. "If a lot of hotels of the size of the 1,000-room Hyatt were being built, I would be worried. But the hotels are not near that size."
Also, most hotels aren't serving the mid-range client targeted by the Hilton Garden Inn. He notes that locally based Sage Hospitality Resources is opening a Residence Inn by Marriott, as well as refurbishing the nearby Executive Tower Inn (ETI). But the Residence Inn is targeting the extended-stay customer, and the ETI is an existing hotel with rooms that will be off the market for most of the year during the renovation. And the planned Four Seasons and Ritz Carlton hotels Downtown are at different price points, he notes.
"Adding new rooms and a better product, I think that is always a good thing," Dimond tells GlobeSt.com. He says he anticipates a third of his customers will be commercial business travelers, a third will be leisure travelers and a third will be travelers attending conventions.
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