Mark Anderson
Staff Writer- Sacramento Business Journal
A $23 million Hyatt Place hotel proposed for Sacramento International Airport could be open in 2017.
This rendering depicts a Hyatt Place hotel proposed for Sacramento International Airport. It could be open in 2017, if Sacramento County approves a development agreement.
Shimahara Illustration
Sacramento County supervisors at their meeting Tuesday will consider a development agreement with Los Angeles-based real estate development firm Sonnenblick Development LLC to build a 135-room hotel between the airport’s main commercial terminals. The hotel would feature indoor pool and spa, fitness room, a dining area and 3,500 square feet of meeting space.
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 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.
The developer also would pay a one-time fee of $2.5 million to use 164 spaces in the airport’s parking garage.
“Our customers have requested the convenience of an onsite hotel for many years and we are now at a point where we are ready to move forward,” said Sacramento County Airport System director John Wheat.
If approved, construction could begin by June, when federal flood map building restrictions on the Natomas Basin are lifted.
A $23 million Hyatt Place hotel proposed for Sacramento International Airport could be open in 2017, if Sacramento County approves a development agreement. This is the site.
Sacramento County Department of Airports
Hyatt Place is a limited-service property. Locally, there are Hyatt Place properties in Davis, Rancho Cordova and Roseville.
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.
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.
The county says if the Hyatt Place is successful, a second hotel is possible.
The airport is a demand driver for the hotel. Many flights out of Sacramento leave very early in the morning, so travelers from all over Northern California could use the hotel to arrive the night before traveling. Also, the hotel, like the airport, is right off Interstate 5, which can generate demand from drivers. Another potential business for the hotel is air crew rooms. Many airlines have contracts that require them house their flight crews in nearby hotels.
January 23, 2015 1:52 PM
SACRAMENTO (CBS13) – A Los Angeles developer is looking to build a hotel at the Sacramento International Airport, county officials announced Friday.
Airport officials will be meeting the Sacramento County Board of Supervisors come Tuesday for approval of the plan. Sonnenblick Development LLC and the Sacramento County Dept. of Airports reportedly have an agreement to build a 5-story, 135 room Hyatt Place hotel next the parking garage at the airport.
“Our customers have requested the convenience of an onsite hotel for many years and we are now at a point where we are ready to move forward,” said Director of Airports John Wheat in a release.
Officials have been looking to build a hotel at the airport since Host Hotel was demolished in 2008 to make room Terminal B.
If the new hotel plan is approved, construction could begin as early as June 2015 and the hotel would open in 2017, airport officials say.
Sonnenblick is reportedly investing $23 million to build the hotel.
January 24, 2015 by bboyd Leave a Comment
THE NATOMAS BUZZ | @natomasbuzz
The Sacramento County Board of Supervisors will decide Tuesday whether to approve an agreement that will allow a five-story hotel to be built at the Sacramento International Airport.
The Sacramento County Department of Airports will go before the board on Jan. 27 to request approval of an agreement with a developer to build a long-sought onsite hotel at the airport. The Sacramento County Department of Airports is responsible for planning, developing, operating and maintaining the county’s four airports: Sacramento International Airport, Executive Airport, Mather Airport and Franklin Field.
Sonnenblick Development LLC has proposed building five-story, 135-room Hyatt Place hotel with an indoor pool and spa, fitness room, dining area and 3,500 square feet of meeting space.
The Los Angeles-based developer plans to lease a 1.4-acre site adjacent to the parking garage for construction of the hotel, as well as 164 spaces on the ground level of the garage. The hotel would be accessible to passengers of both terminals.
Construction could begin as early as June 2015, when federal building restrictions on the Natomas Basin are expected to be lifted. In that scenario, the hotel would open in 2017 or 2018.
Sonnenblick has agreed to invest at least $23 million to build the facility. The Department of Airports will receive a one-time payment of $2.46 million for the use of the parking garage spaces. Rent for the hotel site will be fixed for the first four years for an amount totaling $900,000. In subsequent years, rent will be paid as a percentage of gross revenue.
An in-terminal hotel was in the works for the new Terminal B but was removed from plans due to the economic downturn. Airport staff performed a site analysis and in 2011 issued a Request for Proposals for hotel development. Sonnenblick responded to the RFP with a proposal to develop two hotels. If the Hyatt Place is successful, a second hotel is a possibility.
The onsite Host Hotel was demolished in 2008 to make room for Terminal B construction. Under the agreement going to county supervisors this week, Sonnenblick LLC would pay for construction and assume the financial risk associated with owning and operating the hotel.
The item is number 51 on the agenda and is scheduled for 10:45 a.m. Tuesday. Click here for more information
– See more at: http://www.natomasbuzz.com/2015/01/airport-seeks-approval-for-five-story-hotel/
Posted 12:32 PM, January 23, 2015, by Sam Cohen, Updated at 12:37pm, January 23, 2015
SACRAMENTO-
Sacramento International Airport is seeking approval for plans to build a five-story, 135-room hotel onsite.
A Los Angeles-based developer is proposing to build a Hyatt Place hotel near the parking garage, with access to both terminals. Plans include an indoor pool and spa, fitness room, dining area and 3,500 square foot meeting space.
The Sacramento County Department of Airports will take their plan to the Board of Supervisors on Tuesday.
If approved, construction could begin this summer when building restrictions in the Natomas area are expected to be lifted. It could take more than a year to build the hotel.
An onsite hotel was demolished almost six years ago to make room for the new Terminal B. The new plans have the developer,
This rendering depicts a Hyatt Place hotel proposed for Sacramento International Airport. It could be open in 2017, if Sacramento County approves a development agreement.Shimahara Illustration
By Tony Bizjak tbizjak@sacbee.com
01/23/2015 9:31 PM
Seven years after tearing down the old airport hotel, Sacramento International Airport has reached a deal with a private developer to build a new facility on site – a five-story hotel that will sit within short walking distance of both passenger terminals.
The deal, years in the making, will provide airport customers with a privately built 135-room Hyatt Place. The hotel will include an indoor pool and spa, fitness room, dining area and 3,500 square feet of meeting space.
Airport director John Wheat called the hotel deal a double bonus, returning a major passenger amenity to airport grounds and providing a needed income boost. Airport officials have sought ways to boost revenue to pay down a $1 billion debt load from the recent construction of a new terminal and passenger concourse building.
“It is definitely a nice convenience to our passengers,” Wheat said. “We look at it as a customer service. And, secondly, it generates additional revenue to the airport system.”
The developer, Sonnenblick Industries LLC of Southern California, has been negotiating for two years with the county on the deal. Sonnenblick , the sole company to respond to the airport’s request for proposals, specializes in government buildings but has built a number of hotels and increased its hotel development in recent years.
The airport tore down the previous on-site hotel in 2008 to make room for Terminal B. Officials had originally planned to build a new hotel several years ago as part of the Terminal B expansion project, but were forced to eliminate it as a cost-saving move during the recession.
Until recently, the airport and other Natomas-area landowners have been unable to build new structures because of a de facto building moratorium until flood improvement funding was authorized. That moratorium appears ready to be lifted this spring or summer.
Airport officials will present the deal to the county Board of Supervisors on Tuesday for approval.
According to a staff report for that meeting, Sonnenblick will build the hotel on a 1.4-acre site it will lease from the airport next to the parking garage. The developer will pay the airport a one-time fee of $2.46 million to use 164 ground-floor spaces in the garage for guest parking.
The company also will pay the airport an annual $900,000 in rent for the first four years. In year five and beyond, the rent will be set at a percentage of hotel gross revenue, estimated to be about $475,000 in year five.
The hotel construction cost, to be borne by Sonnenblick, is expected to be about $24 million. Construction is expected to take two to three years.
The hotel site will be on a triangular grassy area, currently unused, at the north end of the parking garage.
Jan 23, 2015, 7:25am PST
Mark Anderson Staff Writer- Sacramento Business Journal
Todd Quam | Digital Sky Aerial Imaging
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.
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.
