Developer set to deliver on New Hotel
The Guardian
Island developer Tim Banks says Charlottetown needs a “branded’’ hotel and he is ready to deliver.
“I’ve lined up a few people that are in that industry — investor types — they see a market opportunity in Charlottetown,’’ the APM president told The Guardian on Thursday.
Banks is aiming for spring construction with the hotel opening in 2011.
He envisions an 80- to 100-room hotel in either the downtown core or near the Sears department store located on the outskirts of the city.
Banks says so-called branded or loyalty hotels like Hampton Inn or Radisson Hotels are “popping up all over the place’’ in neighbouring cities like Moncton, Saint John and Halifax.
He called the Homburg hotel that is currently being constructed at the Confederation Court Mall “more of a boutique type hotel’’ and says it is time to make room for a branded hotel in the capital city.
“If our tourism product doesn’t freshen up, we are going to fall by the wayside,’’ he said. “Essentially, that is where the marketplace has gone.’’
Banks says he is not getting into the hotel business. He is just paving the way.
“We’re just co-developing here,’’ he said. “We’re helping some well-heeled investors put together a deal. We will not be operating it.’’
Banks says while “it’s a sluggish economy and money is tight,’’ he feels the time is right to build a brand hotel in Charlottetown.
On his blog Wednesday, Banks noted hotels like Courtyard by Marriott and Four Points Sheraton have loyalty programs that tourists “we need’’ can’t use in Charlottetown.
“All these new enterprises bring jobs and investments to the Island and gives potential visitors more choices and it also forces existing operators to reinvest in freshening up their facilities and programs all of which is good for the end users and our tourist industry,’’ writes Banks in his blog.
Local businessman Kevin Murphy, chair of the Tourism Advisory Council, says the city has long been in need of hotel development.
“That has been a weakness in our product in Charlottetown,’’ he said. “From an industry perspective, I always welcome new product and competition.’’
Murphy says the competition from new hotels — Banks’, Holmburg’s and potentially others — should provide impetus to other accommodation businesses to upgrade their product.
He stressed, though, the tourism market needs to grow or the city will be left simply cutting up the accommodation pie into thinner slices.