VIRGINIA BEACH — The Princess Anne Commons is a bustling hub of schools, medical centers, sports facilities, businesses and the city plans to accept proposals for a new hotel in the corridor.
Director of Economic Development Warren Harris updated city council Tuesday on the hotel’s progress and recommended soliciting proposals from private developers who want in as early as May.
“There is a demand for hotel rooms in the corridor,” Harris said. “The hotel certainly makes sense as a very financially positive investment back to the city.”
The annual tax revenue estimate the hotel could bring to the city is $275,985, according to fiscal impact data provided by the finance department.
A RevPAR Management Company feasibility test in 2015 indicated the market in the area could support a 125-room, moderately upscale and limited service hotel.
“Our assumption is, quite frankly, because of what we see in the corridor on a regular basis, that the room count could increase,” Harris said. “We’ll look at that as we move forward.”
City Manager Dave Hansen said the staff’s vision is a two-phase project. The first would erect a single tower with capability to host conferences. The second would include a second tower with an expansion of the hotel’s conference hosting capabilities.
A private developer and operator would carry the cost to build and run the hotel, as well as purchase the land from the city.
An appraisal by Brian Dundon & Associates in March showed that the project’s potential investment could equate to $578,000 per acre, according to Harris’s presentation.
“There may be a little bit of public infrastructure we may want to participate in,” Harris said about the city’s financial interest in the project.
The city wants the hotel to sit on two parcels of city property at the Tidewater Community College entrance on the corner of Princess Anne Road and Community College Place.
The hotel would compliment the future TCC Workforce Development Center that could be built across the street.
“We all agree that this project will certainly support [TCC’s] efforts to enhance the hospitality curriculum, which is one of the most important industries in this sector,” Harris said.
When the city staff met with TCC last week regarding the hotel, both parties agreed that it would be easier if the city executes this plan rather than the Virginia Community College system, according to Harris.
Though the city hasn’t formally called for proposals, Harris said they’ve received inquiries from interested companies.
Harris said the request for proposals is on track to begin in May and that a hotel review panel will include representatives from TCC to pick a developer and operator.
“It’s going to do well there with all those sporting events going on,” Mayor Will Sessoms said.