As one new hotel approaches its grand opening and Castle Properties prepares to break ground on another, local developer Mark Castleberry predicts more hotel projects on the horizon.
And hotel projects are attracting the interest of chain restaurants potentially locating in Columbus. Representatives from Chick-fil-A, IHOP and Olive Garden have made inquiries about locating in the city.
Joe Higgins, CEO, of the Columbus-Lowndes Development Link said the new developments can only make the city more attractive to retailers and restaurants. And, he said, past studies showed a need for at least two hotels in Columbus.
“We have increased confidence in the need for hotels in Columbus,” said Castleberry, owner of Castle Properties. “The market continues to grow.”
In 2007, when developers were researching plans for an indoor mall in Columbus, “they said Columbus, at that time, was two to three hotels short of what we needed,” said Higgins.
“There is always going to be a market for lower-end hotels for various reasons — from contractors to those traveling on a budget or renting by the week until they get into their own place or relocate,” he said. Where the dearth has been is at the middle end or the higher end.”
Two Starkville hotels Castle Properties renovated are evidence of the market for hotels in the area. Renovations were completed on the 68-room Hampton Inn and the 76-room Comfort Suites in early 2010.
“Those hotels have done very well,” Castleberry said, noting Columbus is “underserved” in hotels.
“We continue to see the job creation that”s continuing at the aerospace park,” he noted. “There is generally the need for rooms, with Columbus Air Force Base, general business and regular travel.”
“We have a base graduation every three weeks. We have all these out-of-towners coming to see their family members graduate. Paccar”s bringing in their whole dealer network. In last 13 months, we”ve had board members for Paccar, Weyerhaeuser, Severstal, the Eurocopter EADS North America folks. They need a place to stay; they need restaurants where they can eat when their events are not catered,” Higgins added, further illustrating the need for more hotels.
While the new mall never came to fruition, it offered valuable research. At the time, the Marriott and Fairfield Inn were among the hotels suggested. Castle Properties” development off 18th Avenue North will include both the hotels once completed.
Workers have gone through their first set of punch items at the 90-room Fairfield Inn and Suites, scheduled to open for business on April 1.
“We hope to get it going before the first of April, but we”re comfortable with April 1,” Castleberry said.
Logan”s Roadhouse, which has signed on to build at one of the restaurant pads in the 18th Avenue development, is expected to open in August.
The site offers enough space to house up to four restaurants, and Castle Properties is working “several prospects,” Castleberry said.
IHOP and Olive Garden have looked at the site as a potential location, according to Columbus Mayor Robert Smith. And Chick-fil-A is considering the nearby old Sante Fe building, which most-recently housed Caney Fork.
Olive Garden also has looked at the possibility of located on Highway 45 North, next to Belk department store, where a new Hampton Inn is being developed by Canton-based Jackie”s International.
The $4 million project will feature more than 80 rooms, but work has stalled on the development, said Kenny Wiegel, Columbus Building Department director.
“Nothing has happened out there for quite some time,” Wiegel said, noting developers have run into delays due to financing.
Developers hope to be back working on the project by the middle of this month, he said, adding future plans are to have a Hilton Inn and Gardens at the same site, farther west, away from the highway.
Construction is scheduled to begin mid-year on the Courtyard by Marriott, a 110-room hotel, which will be neighbor to the Fairfield Inn. It is expected to open in mid-2012.
The Courtyard by Marriott will boast the largest meeting space of any hotel in the area, a Starbucks coffee shop and an indoor swimming pool.
Costs were projected at $9.8 million for the Fairfield Inn and Suites and $13.5 million for the Courtyard by Marriott.
Roadwork continues to widen Sixth Street, off 18th Avenue, to allow better access to the properties, and the road should reopen with an added turning lane and traffic light, in mid-February, Castleberry said.
“Mark”s development on 18th Avenue is going to totally transform that area, already has really,” Higgins said.
And “it just doesn”t benefit restaurants on his property,” Higgins added. Nearby restaurants like Barnhill”s also will reap the benefits.
“The other businesses around will get the advantage of it, can get the advantage of it and should,” he said, adding, “We”re always worried about the out-of-town guys, but it makes living here a lot better, too.”
In the future, Higgins would like to see a new hotel built at the Gilmer Inn location in downtown Columbus.
A new hotel will make a nice complement to the new soccer park, newly renovated Tennessee Williams Home and Welcome Center and new Columbus Convention and Visitors Bureau.
“All of a sudden, in a very short period of time, you”ve transformed the front door to downtown in a huge way,” Higgins said.
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