NATIONAL REPORT—From East Coast to West, hotel projects are coming out of the ground.
R.D. Olson Construction Breaks Ground on AC Hotel by Marriott
R.D. Olson Construction began construction on the AC Hotel by Marriott, a 98,728-sq.-ft. property in El Segundo, CA. The ground-up construction will feature European-inspired rooms and meeting spaces.
Situated in a newly developed office park near the Los Angeles Lakers training facility, the six-story AC Hotel will consist of 180 guestrooms, a 24-hour fitness center, meeting rooms and a host of outdoor spaces, including the first rooftop bar and lounge in the area, according to the company.
The property is also in close proximity to the Los Angeles International Airport and walking distance to The Campus El Segundo Athletic Fields.
R.D. Olson Construction is working with the Welcome Group Inc., AXIS/GFA Architecture + Design, Design Force Corporation and Robison Engineering Inc. on the project. Completion is anticipated for spring 2019.
Graduate Roosevelt Island Begins Construction
AJ Capital Partners and Cornell University have commenced construction for New York City’s Graduate Roosevelt Island at the Cornell Tech campus, part of the Graduate Hotels collection.
AJ Capital selected Emigrant Bank to provide a $60-million five- year floating-rate construction loan. Jones Lang LaSalle acted as broker for the financing.
Graduate Roosevelt Island is slated to open in spring of 2020. Architectural firm Snohetta has been tapped to design the 18-story, 224-key hotel.
The hotel’s slender profile will mark the entrance to the campus while offering guests unobstructed views of the skyline through floor-to-ceiling windows. The hotel’s aesthetic will reference the history of Roosevelt Island, while also capturing the spirit of innovation inspired by the Cornell Tech campus, according to the company.
The property will include a full-service restaurant, indoor-outdoor rooftop bar with views of Manhattan, and 3,000 sq. ft. of flexible meeting and event facilities.
There are currently 10 open and operating Graduate hotels across the U.S. and an additional eight hotels under development slated to open by 2020.
$40.7M Ground-up Construction Loan for a Dual-branded Marriott
Arriba Capital recently secured a $40.7-million ground-up construction loan for a 194-key, dual-branded Marriott Fairfield Inn & Suites and TownePlace Suites in Atlanta. The hotel will be seven stories on top of a 220-space, five-story parking deck. The non-recourse loan was leveraged to 78% of the total project cost with a two-year term and three 6 month extension options.
TownePlace Suites is Marriott’s extended-stay brand in the upper-moderate tier, designed to appeal to business and leisure travelers who stay for four nights or more. Fairfield Inn & Suites is Marriott’s primary economy brand in what Marriott classifies as the moderate‐tier segment. By offering both brands in the same hotel, the borrower will cater to a larger demographic and save on expenses.
Amenities will include a market pantry, meeting space, fitness room, and business center. The two hotels will share a common front‐of‐the‐house area including registration, breakfast area, and fitness room. Back‐of‐the‐house elements will also be shared including laundry, maintenance area and mechanical/electrical.
The property will be located in Midtown Atlanta directly across the street from Emory University Hospital and walking distance to major attractions, such as World of Coca-Cola, Georgia Aquarium, Fox Theatre, College Football Hall of Fame, Centennial Olympic Park, Phillips Arena, Georgia Dome, the new $1.5-billion Mercedes Benz Dome, Georgia Tech University, Underground Atlanta, National Center for Civil and Human Rights, CNN Center and Georgia World Congress Center.
The borrower is a privately held hospitality management and development company that currently owns and operates 22 premium-branded hotels in the Southeast.