New hotel checking in
By Carol Coultas
,
Business Writer
Tuesday, February 19, 2008
AUBURN - Nine months after announcing their engagement, Marriott Corp. and its partners have tied the knot on the city's newest mall-area tenant: a Residence Inn hotel.
"We're very excited about this project," said Bob Baldacci, vice president of development with Ocean Properties. "We looked at the numbers, what the competition is and what the proposed competition is, and decided in that location, a Residence Inn would be a great match."
The deal was signed Monday by Portsmouth-based developers Ocean Properties, Marriott Corp. and local developer George Schott. A four-story, 100-room Residence Inn - a mid-level Marriott franchise designed for extended stays - is planned for the intersection of Mount Auburn Avenue and Turner Street where the vacant Androscoggin Plaza sits.
"We're pushing hard for a 2008 opening," said Schott, who owns the site. "Early October would be the earliest."
Marriott indicated its interest in an Auburn location last spring, but was eyeing the market for a Courtyard franchise, which caters to business clients. Several local people thought the Ocean Properties deal was dead when another developer announced plans in November to build a Courtyard in Lewiston at the Island Point site.
"No, that wasn't the case," said Richard Ade, chief financial officer of Ocean Properties. "We just kept moving forward and didn't want to make an announcement until it was approved by Marriott Corp."
Extended-stay guests are a different market, said Greg Mitchell, a consultant for Schott with Eaton Peabody. He said the Residence Inn will capitalize on an underserved market - families drawn to the area by Bates College events and for services at the two local hospitals.
"This will be a family-oriented hotel, with an indoor pool, free breakfasts, fitness center, galley kitchens and more," Mitchell said, adding the franchise choice was directly tied to the three local institutions. Suites are separated into sleeping and living quarters and there are certain services - such as personalized grocery shopping - available. According to the Marriott Web site, there are 516 Residence Inns in the United States.
"This kind of hotel is the perfect match for the market, and the support and growth of Auburn's retail center," Mitchell said.
He added that hotel guests will likely be spending money locally at shops and restaurants, prodding more development.
"It fits very well with the overall design of the area," he said.
That vision has been part of the long-term development of that section of the city since 1984, when officials adopted zoning to concentrate retail development there. Utilities were extended at the time the Auburn Mall was built in 1979, with the exception of gas lines that went in in the late '90s. Tax increment financing districts were designated in 2002 and 2005 to further encourage development alongside BJ's Wholesale Club, the original Wal-Mart and Home Depot.
Since then, big-box retailers like Lowe's, a Wal-Mart Supercenter and Kohl's have moved in, while smaller retailers and restaurants have sprung up in their shadows. A hotel has always been part of the mix, said Roland Miller, economic development chief for the city.
"With mixed uses, you hope to attract some synergy," said Miller, crediting councilors, planners and staff with having the foresight to put the foundation in for this kind of development years ago. "We want this to be a retail destination for the western Maine area."
Schott said he was pleased the deal was finally signed, dismissing the notion that there was a competition between the two cities to land a new hotel.
"The Twin Cities wins," he said, noting the Residence Inn is the third new hotel for the area, following Lewiston's announcement of the Courtyard late last year and the Hilton Garden Inn, which opened in 2003. Earlier this week, revised plans for Great Falls Plaza were submitted to city planners that showed another 100-room hotel slated for development there. Mullaney Hospitality Group would build and operate it, according to the application. That group's Web site touts several Sheraton and Holiday Inn franchises.
Ade said Ocean Properties is accelerating its construction schedule, eager to open as soon as possible. Building designs are under way and if all goes well with city permitting, ground can be broken by mid-March.
"This is all private investment," he noted. Schott will be an owner/developer of the project, but Ocean Properties will manage it once built. |