Developer cites convention hotel as reason for room reduction at proposed East Village hotel
KENT DARR Mar 2, 2015 | 10:02 pm
1 min read time
254 wordsAll Latest News, Real Estate and DevelopmentDevelopers of an East Village hotel will tell the city of Des Moines Urban Design Review Board that the project needs to lose one floor and cut 26 rooms out of concerns about price competition from a proposed convention center hotel.
Iowa City-based Siegeworks Lodging Inc. had proposed a six-story, 137-room hotel as part of a square city block development at 201 E. Locust St. that is being led by Hansen Real Estate Services.
The project, called City Square, also includes a seven-story, 124-unit apartment building. Siegeworks plans a Staybridge hotel, but is concerned that it could be forced to cut room rates if vacancies occur and the nonprofit organization that will operate the proposed $101 million, 330-room Iowa Events Center convention hotel decides to lower its room rates as a result, said Troy Hansen, president of Hansen Real Estate Services. As a result, Siegeworks wants to reduce the number of rooms to 111 from 137.
Though the two hotels would attract different clienteles, they would face the same pricing challenges, Hansen said. The convention center hotel originally was planned as a 450-room facility, but that number was reduced for a number of reasons.
Supporters have said other nearby hotels — there are more than 1,900 rooms within one mile of the convention center hotel site — should benefit from the reduced size.
The Urban Design Review Board meets at 7:30 a.m. Tuesday at Des Moines City Hall. A 100-room boutique hotel also is planned for the East Village.