Developer proposes to put Hyatt hotel at airport
By Sharokina Shams 7:25 PM PST Jan 23, 2015
SACRAMENTO, Calif. (KCRA) —The Sacramento International Airport could finally have a new hotel if plans that have been years in the making are approved next week.
Sonnenblick Development, a Los Angeles-based developer, is proposing to put a Hyatt Place hotel in a grassy area next to a parking garage, an open space between the airport’s two terminals.
Watch report: Plans in the works to build hotel at Sac Int’l
“It really benefits the people within our primary region,” said Sacramento County’s airport director, John Wheat. “A region all the way up to Redding, within 100 miles of this airport. It is our primary airport where a lot of our passengers come from.”
An existing hotel was torn down more than six years ago to make room for the new Terminal B and the recession stopped plans for a new hotel at that time.
The new terminal, which cost roughly $1 billion, has left the airport in debt and forced budget cuts.
Wheat said a new hotel, in addition to giving travelers a convenient place to stay, would also bring in new money.
“Everything helps, I mean, it’s a revenue,” Wheat said.
The $24 million in construction costs would be paid by the developer, who would pay the airport about $2.5 million up front, and several hundred thousand dollars a year to lease the property.
On Friday, some travelers said a new hotel would make traveling more convenient for out-of-town visitors and for travelers from around Northern California.
“If you’re leaving on a long trip and have a very early departure, that might be a good idea,” said Neil Robinson, who said he lives in Folsom.
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Video Transcript
INTERVIEW WITH SABRINA RODRIGUEZ RIGHT NOW ON KCRA.COM. PLANS ARE MOVING FORWARD TO BUILD A HOTEL AT SACRAMENTO INTERNATIONAL AIRPORT. IF COUNTY LEADERS APPROVE THIS PLAN, THE HOTEL WOULD BE BUILT HERE IN THIS GRASSY AREA BETWEEN TERMINAL A AND TERMINAL B. AND THE NEW HYATT PLACE HOTEL WOULD LOOK LIKE THIS. KCRA 3’S SHAROKINA SHAMS IS LIVE AT THE AIRPORT AND THESE PLANS AREN’T REALLY NEW. NOW IT LOOKS LIKE IT WILL HAPPEN. THAT’S RIGHT. THESE PLANS HAVE BEEN A LONG TIME IN THE MAKING. WE CAN TAKE A LOOK OUTSIDE OF THE WINDOWS AND GIVE YOU A LOOK AT THE SITE BEHIND ME LOOKING OUT THE WINDOWS OF THE BACK OF TERMINAL B. THE HOTEL WOULD GO WHERE THAT ART WORK SITS OUTSIDE A PARKING GARAGE. IT COULD MEAN A MUCH-NEEDED FINANCIAL BOOST FOR A COUNTY AIRPORT THAT HAS A LOT OF DEBT. DUSTIN BILTON IS VISITING SACRAMENTO TODAY WITH HIS 18-MONTH-OLD SON. NORMALLY, HE’S HERE ON BUSINESS AND LIKES THE IDEA OF A HOTEL AT SACRAMENTO INTERNATIONAL AIRPORT. FOR ME AS A MANAGER, IF I WANT TO HOST A MEETING HERE, IT GIVES ME ANOTHER OPTION, TOO. FOR ANOTHER REASON THAT WE WOULDN’T GO TO SAN FRANCISCO. IT WOULD GIVE SACRAMENTO ANOTHER OPPORTUNITY. THIS ART SHOWS WHAT HYATT IS PLANNING — A NEW, 135-ROOM HOTEL LIKE THIS HYATT PLACE HOTEL WHICH WAS BUILT IN ROSEVILLE, NEAR THUNDER VALLEY CASINO FIVE YEARS AGO. EVERYBODY’S GOING TO HAVE JOBS. IT’S KIND OF A PEBBLE IN THE WATER, IT GOES OUT FROM THERE. AN EXISTING HOTEL HERE WAS TORN DOWN SIX YEARS AGO TO MAKE ROOM FOR THE NEW TERMINAL B. WITH A COST OF $1 BILLION, THIS TERMINAL HAS ALSO BROUGHT DEBT TO THE AIRPORT AND FORCED BUDGET CUTS. BUT A NEW HOTEL, SINCE IT WOULD BE PAID FOR BY THE DEVELOPER, COULD HELP PUT A DENT IN THAT. HYATT WOULD PAY THE AIRPORT $2.5 MILLION UP FRONT AND THEN SEVERAL HUNDRED THOUSAND DOLLARS A YEAR TO LEASE THE PROPERTY. JOHN WHEAT IS THE COUNTY’S AIRPORT DIRECTOR. EVERYTHING HELPS. I MEAN, IT’S A REVENUE. IT REALLY BENEFITS THE PEOPLE WITHIN OUR PRIMARY REGION, A REGION ALL THE WAY UP TO REDDING, YOU KNOW, WITHIN 100 MILES OF THIS AIRPORT. THERE WERE PLANS FOR A NEW HOTEL AS TERMINAL B WAS GOING UP, BUT THEY WERE SCRAPPED BECAUSE OF THE RECESSION. TODAY THOUGH, IT WASN’T JUST FAR-AWAY TRAVELERS WHO TOLD US THEY’D STAY IN A HOTEL HERE. NEIL ROBINSON LIVES IN FOLSOM. IF YOU’RE LEAVING ON A LONG TRIP AND HAVE A VERY EARLY DEPARTURE, THAT MIGHT BE A GOOD IDEA. IN CASE YOU’RE CURIOUS, HYATT IS SET TO SPEND $24 MILLION BUILDING THE HOTEL. THIS ISN’T A DONE DEAL UNTIL THE COUNTY BOARD OF SUPERVISORS APPROVES IT. THEY’RE SET TO CONSIDER IT AT THEIR MEETING NEXT WEEK.
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
