The Block 'Best' Site for a Hotel

An outside consulting firm hired to do a hotel feasibility study presented its report to the Duluth City Council and concluded that the Old City Hall Block, now called “The Block,” would be the best site for a 100-unit select service hotel.

Representatives of San Francisco-based PKF Consulting USA attended an April 29 joint Duluth City Council and Downtown Development Authority work session to present the report. Senior Vice President Henry B. Staley Jr. from the consulting firm’s Jacksonville, FL, office delivered the study results. He was accompanied by Vice President Jill L. Bidwell from the Atlanta office.

PKF Consulting USA studied four possible locations in downtown Duluth and three sites outside downtown: Site 1 on the east side of North Berkeley Lake Road between Pleasant Hill Road and Buford Highway, Site 2 in the northwest quadrant of the intersection of Peachtree Industrial Boulevard and Abbotts Bridge Road (GA Hwy. 120); and Site 3 on the west side of Sugarloaf Parkway between Peachtree Industrial Boulevard and Buford Highway. Site 2 is near the AGCO global headquarters.

None of the three sites outside downtown are suitable for hotel development at present, Staley reported.

The four sites studied in the city were The Block (Site A), the vacant property and an existing parking lot behind Duluth City Hall (Sites B & C), and vacant property next to the Mathias Building (Site D) on Main Street across from City Hall. The property behind City Hall was recently purchased by the city for a potential parking lot.

A downtown site would provide the best opportunity for successful hotel operations and would appeal the most to a potential developer, according to the report. The Block site was the most desirable of the four downtown sites because of its proximity to amenities such as dining and entertainment, Staley said.

Suitable hotels suggested by Staley for the site included a Courtyard by Marriott, a Hampton Inn & Suites, a Hyatt Place, a Hilton Garden Inn, and a Springhill Suites by Marriott. A possible hotel opening date could be Jan. 1, 2015, he said.

PKF Consulting USA’s report included a market analysis, occupancy predictions, average daily rates and cash flow projections for the four downtown sites.

The study also cited occupancy rates and performance data for nine existing hotels in the Johns Creek and Peachtree Corners areas.

The firm was hired by the city’s planning staff. City Manager Tim Shearer had recommended the staff seek professional services to conduct the hotel feasibility study.

DDA Vice Chairman Rob Ponder said he had a potential developer interested in looking at the report and would show it to him.