Two hotels planned for Ellerslie (3:50 p.m.)
Ron Chalmers, edmontonjournal.com
Published: Wednesday, April 25, 2007
EDMONTON — The city’s fast-rising occupancy rate has triggered plans for two new hotels at 101st Street and Ellerslie Road.
“We’re just getting the paperwork through the city, then we will proceed,” Vancouver developer Charan Rai said today.
He plans to build a $14-million Gateway Sheraton hotel “catering to small business people,” with 154 guest rooms.
A second hotel, costing $7 million, will target the “leisure tourist” market with 99 rooms, and may fly the Hampton Inn banner, said Rai, who also has six hotels in British Columbia.
“The traffic numbers in that area are very healthy,” said Kenn Bur at Edmonton Economic Development Corporation.
Across the Edmonton metropolitan region, hotel occupancy rates rose in 2006 to 71.7 per cent from 66.1 per cent in 2005.
“Edmonton is now the No. 1 tourism destination in person-visits to Alberta,” Bur said.
The new entrants do not threaten existing hotels, said Richard Wong, general manager of Sutton Place Hotel.
“Demand is growing faster than hotel-room inventory,” he said, so new construction will not affect average room rates.
Meanwhile, a Marriott Courtyard hotel to be built at the Edmonton International Airport has been delayed by one year.
The hotel was to open in 2007, but the developer, Concord Hospitality Enterprises of Raleigh, North Carolina, has delayed its start until this summer, said Edmonton Airports spokesman Roy Thorpe. It is now expected to open in the summer of 2008 with 192 rooms and a pedway connection to the main terminal.
The delay was caused by protracted planning, negotiations and an early winter, Thorpe said.
[email protected]