Jan 23, 2015, 7:25am PST
Mark Anderson Staff Writer- Sacramento Business Journal
In a major step forward for Sacramento International Airport, county supervisors on Tuesday will consider a development agreement for a 135-room Hyatt Place hotel to be built between the two passenger terminals.
Sacramento County, which operates the airport, has been seeking a hotel for more than a decade. The previous hotel at the airport, the Host Airport Hotel, was successful, but the small hotel was demolished for the expansion of the airport’s new terminal and parking garage.
The five-story hotel would be just north of new parking structure at the airport, between the two commercial airline terminals.
Hospitality company Sonnenblick-SMF LLC would develop and operate the hotel, paying the county a fixed fee of $900,000 though the first four years of operations, and then a scale of percentage of gross revenue. That scale would be 5 percent from years five through 19, 6 percent in years 20 through 39 and then 7 percent of gross in years 40 through 50.
Hyatt Place is a limited-service property. Locally, there are Hyatt Place properties in Davis, Rancho Cordova and Roseville.
Sonnenblick-SMF LLC would negotiate a contract with the UNITE-HERE Local 49, the local hotel and restaurant employees union. The previous hotel had been a union shop.