By Carol Coultas,Business Writer

AUBURN – Business has been so good at the Hilton Garden Inn that developer Lee Griswold is planning a 36-room addition for the riverside hotel.

“Our original plans allowed for this expansion, but the time for it has come sooner than expected,” said Griswold, part owner of the $10 million facility that opened in 2003. “We’re doing it at the two-year mark, rather than the five-year mark.”

Plans call for the hotel to expand about 30 feet to the southeast. The 20,000-square-foot addition will house 12 king suites and 24 king or double-bed rooms, and is designed to blend in with the current architecture.

“The expansion will rise up to meet the existing sixth-floor height,” said Griswold. “It will look as if it were there all along.”

Griswold said the hotel has met or exceeded its expectations for occupancy and mix of guests since opening. Right now, the guest register breaks down to about 80 percent individual, transient occupants and 20 percent group bookings. There is a good mix of businesspeople, tourists, Bates College parents and others who stay at the 108-room hotel, said Griswold.

The success of the Hilton to date prompted him to contact Hospitality Valuation Services, the same consulting firm that did the initial market study when he originally considered building an upscale hotel at Great Falls.

“We were asking them to look at our current operation and results, and answer A: Do we expand? and B: If so, how many rooms?” said Griswold.

The answer came back: Yes, and about 30.

“The results confirmed what we intuitively knew,” he said.

Griswold also noted that the 12 additional king suites mean the hotel gains flexibility in generating revenue and marketing. Currently the hotel has two king suites. The new suites are expected to have views of the falls and exterior balconies, putting them at the top of the pricing tier.

Rooms now range from $89 per night to $189 per night, fluctuating with amenities and seasons. General Manager C.J. Manchester said room rates will likely be revised mid-year in response to market trends.

New Hilton Garden Inns have sprung up in downtown Portland and Freeport since Auburn’s RiverWatch opened in July 2003. The chain continues to expand, recently opening its 250th hotel in Times Square.

Griswold said he has submitted his expansion plans to Hilton’s corporate headquarters and expects they will be on the Auburn Planning Board’s December agenda. If all goes well, he hopes to begin work on the project this spring, with a fall 2006 completion date.

The construction will likely coincide with developer Tom Platz’s work on his new office building nearby. Griswold said he has already spoken with Platz staff about coordinating schedules so construction will have as little impact on traffic and existing businesses as possible.

“I think it’s kind of neat that all of this will be going on at the same time,” said Griswold. “You know, it really underscores the overall success the cities have enjoyed over the last couple of years.”