Construction of a new 14-story hotel at Ninth and L streets in downtown Sacramento is likely to commence by midyear, according to the developer.
Eva Hill, CEO of Sacramento-based Venture Oaks Real Estate Group, has filed permits with the city to demolish a two-story building and replace it with a 265-room luxury hotel with a rooftop lounge. It will be the first Canopy by Hilton, a boutique luxury brand, in the Sacramento area. Hill said the hotel is expected to open by early 2023.
And it won’t be the only hotel opening up in the next few years — at least four new hotels are scheduled to open in downtown or Midtown, with at least three of those at or near the end of construction. Those include the Hyatt Centric next to the Golden 1 Center and a Hyatt House inside a converted Eastern Star building in Midtown.
CapRadio’s Mike Hagerty spoke with Sacramento Business Journal Editor-in-Chief Adam Steinhauer about how the property at Ninth and L streets is developing.
The interview has been edited for clarity and length.
Interview Highlights
On what is currently on the site for the new luxury hotel and what’s around it
There’s a two-story building on that property now. The developer, Eva Hill of Venture Oaks Real Estate Group, they have a permit to demolish that building and build in its place a 14-story, 265-room luxury hotel with apartments on the upper floors and a rooftop lounge.
And there’s actually a lot of hotel development going on in that area [near the Downtown Commons and Golden 1 Center.] There’s the Hyatt Centric next door to Golden 1 coming up. There’s The Exchange hotel downtown and a couple of others in Midtown that are likely to be completed within the next year or so.
On if the COVID-19 pandemic has greatly affected the hospitality business in Sacramento
For what it’s worth, Eva Hill, with Venture Oaks Real Estate Group, they say that they’re confident in the future of the industry once the world gets back a little more towards normal. They’re also likely to benefit, along with these other new properties, from the expanded convention center, which is to open soon, [along with] the other pieces of the convention center expansion project, including that memorial auditorium.
On the cost of constructing the luxury hotel
They haven’t released the prices to me yet, nor have they named a general contractor.
On some of the hotel’s future amenities and other hotel projects going on downtown
There’s going to be a ground-floor restaurant and bar [at the hotel]. They are also talking about ideas like locally inspired food and drink options and bicycles for guests to explore the city with.
Over the next year, at least four new hotels are scheduled to open in downtown or Midtown, and at least three of those are at or near the end of their construction. Those include the Hyatt Centric next door, the Golden 1 Center restaurant owner, Randy Paragary’s hotel in Midtown, and the conversion of the Eastern Star building in Midtown to a Hyatt House hotel.
Sacramento was really booming with hotel construction before the pandemic … all of these projects that got started then and hopefully will open up into a stronger market, assuming that the pandemic is under control. We’ll have a new convention center and some other attractions to draw guests to these hotels.
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