According to Ryan Cronk, vice president of development for Premier Properties, the rough development costs for each hotel currently map out to $12 million to $16 million. "These figures are very preliminary, though," he tells GlobeSt.com.
Cronk says this is Premier Partners' first foray into hotel development and its first partnership with Interstate Hotels. "We were looking to add hotels to some of our retail developments," he says, adding its retail and lifestyle projects are prime candidates for a hotel component. He says Premier has at least four other projects in the pipeline, "some of which will be developed with Interstate."
As is often the case with the locally based company's partnerships, Interstate will invest a 15% equity interest into the JV and manage the hotels after they deliver. "This is our 13th joint venture partnership and represents a continuation of our strategic plan to expand our real estate ownership through minority equity positions as a complement to our management contract business, which remains our core business," Thomas Hewitt, Interstate's CEO says in a press release.
In Williamsburg, the JV will develop a 114-room Hyatt Place at the Marquis, a one-million-sf, mixed-use entertainment and retail center that's under development. It is slated to open in 2008. Construction of the hotel is expected to begin late this year.
In Indiana, a 136-key aloft hotel is planned for the Metropolis and another 136-room aloft will go up at the Venu in Indianapolis. The Plainfield aloft will be part of a two-million-sf center, which was developed in 2005 by Premier Properties. The first phase is already open, with more than 500,000 sf of occupied space. Premier Properties is now building a 500,000-sf second phase. Construction of the hotel is expected to begin in early 2008.
The Venu is a new lifestyle center located in a residential and business hub of Indianapolis. It is a mix of high-end retail shops, office, residential, restaurants, a performing arts theater and natural foods supermarket. The hotel groundbreaking is scheduled for 2008.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
