Salt Lake City – A group of companies has announced plans to develop two hotels, a structured parking garage and mixed-use retail on a 3.26 acre development site in downtown Salt Lake, adjacent to Energy Solutions Arena. The group consists of Alex. Brown Realty, Inc. (ABR), in conjunction with PEG Development (PEG) and Blue Diamond Capital (BDC)
The site is at the southwest corner of 100 South & 300 West, adjacent to the Energy Solutions Arena. In addition, the site is located one block west of the 679,000-square foot Salt Palace Convention Center and three blocks west of Temple Square. City Creek and Gateway, two of the most prominent Salt Lake City retail centers providing approximately 1.5 million square feet of retail shopping and dining, are located within walking distance of the site.
The project will be built in two phases. Phase I will consist of a 159-room extended-stay Hyatt House hotel and a 349-space structured parking garage. This will be the first urban Hyatt House in the Hyatt portfolio. The ownership group secured a $19.4 million construction loan from U.S. Bank for Phase I. Prior to commencing construction, the joint venture will complete an environmental remediation of the site in accordance with plans approved by the Utah Department of Environmental Quality and the U.S Environmental Protection Agency.
Phase II will consist of a 175-room select-service new urban Courtyard by Marriott hotel. Both hotels will feature ground-level retail and the parking garage will accommodate hotel guests as well as event parking. The developers anticipate a fall 2014 opening for the Hyatt House Hotel and a spring 2015 opening for the Courtyard by Marriott. Rimrock Construction of Draper is the general contractor and Beecher Walker Architects of Holladay is the project architect. Lodging Dynamics of Provo, Utah, will manage both hotels.
PEG Development and Blue Diamond Capital acquired the site in September of 2011 and have since received all necessary approvals to begin construction. “We are thrilled with the location of this project – with its ease of access to the city’s improved public transportation, and other Salt Lake entertainment, business function and retail amenities,” said Cameron Gunter, PEG’s founder and managing member. “We have a very strong ownership group and the city has been very helpful over the past couple years in making this project come together.”
Based on data provided by PKF Consultants, supply in the Salt Lake metro area has increased by 2.3 percent, while demand has increased by 6.3 percent since 2009.