Eight-story Residence Inn planned for Lower Broadway near Pearl

Lina Portman3 weeks ago

0 4 minutes read

The Pearl District is poised to become a hotel district, with a Chicago developer preparing to build an eight-story Residence Inn by Marriott in the middle of a planned mixed-use district on the east side of Broadway.

Phoenix Pearl LLC, linked to Chicago hotel builder Phoenix Development Partners, plans to break ground in November on a $37 million, 175-room hotel on the southeast corner of Alamo and Grayson streets, according to plans filed last week with the Texas Department of the Environment. Licensing and regulations. He purchased the roughly half-acre property in March from GrayStreet Partners, the co-developer of Broadway East, a 20-acre neighborhood and shopping district projected directly to the south and expected to include 1.8 million square feet of retail, office and multi-family housing. and reception area.

The Residence Inn will span 119,000 square feet and include a first-floor bar and dining room, courtyard and swimming pool, according to the state Department of Licensing and Regulation. Construction is expected to be completed in June 2026.

John Mangel, founder and CEO of Phoenix, did not respond to a voicemail seeking comment. Kevin Covey, GrayStreet's general partner, did not respond to a text message seeking comment.

The hotel – part of a chain offering extended-stay rooms, with private kitchens and free grocery delivery – would be an important addition to the growing business and hospitality hub along Lower Broadway.

In the past five years, two corporate headquarters have been completed nearby: a 10-story tower for Credit Human credit union and a 13-story tower for Jefferson Bank. There have been major additions to the Pearl, such as the Stable Hall concert hall and the Pullman Market grocery store. The stretch of Grayson Street that the hotel would face has gained a growing reputation as a culinary district, with mainstays such as Claudine's Restaurant, The Modernist and Three Star Bar.

Meanwhile, GrayStreet is partnering with local retail builder Fulcrum Development to build the highly anticipated Broadway East, also known as the BESA District, on several blocks south of the planned Residence Inn. The first phase, expected to begin later this year, will include about 175,000 square feet of retail space, according to a brochure from Shop Cos., the Dallas-based real estate company handling the leasing. His goal is to fill the space with well-known luxury brands such as Louis Vuitton, Gucci, Ralph Lauren and Lucchese Boots.

The 386-unit Encore Grayson apartment complex recently opened next to the Residence Inn site, taking up most of the block. It was built with the help of $7 million in tax increment reinvestment zone funding for utility improvements, street reconstruction, new sidewalks and other public improvements.

Despite all the growth along Lower Broadway in recent years, the luxury Emma at Pearl hotel has remained the area's only major hotel option. And while it has received accolades, it can hardly be considered an option for ordinary travelers, with its typical rooms costing between $600 and $800 a night during upcoming weekends this summer, according to its website. Penthouse suites can cost upwards of $3,900.

But visitors to the area will soon have more options.

Oxbow, the development arm of Pearl builder Silver Ventures, is building an eight-story, 151-room hotel named The Grove at 1210 E. Elmira St., on the River Walk across from the Pearl. Oxbow CEO Bill Shown said The Grove would not be another luxury property like Hotel Emma.

“It will be absolutely beautiful, high quality, but not at this level of quality or service,” he told the Report last year. “Hotel Emma is so unique and its own brand that we want to make sure this hotel is both actually and perceived as different from Hotel Emma.”

The McCombs family has included a hotel in its plans for a mixed-use community on a 5.9-acre tract it purchased last year from CPS Energy on the River Walk next to the San Antonio Museum of Art, according to documents obtained by the San Antonio Express. -News.

GrayStreet had planned to build a 20-story W Hotel near the Pearl on lower Broadway, but it's unclear whether the project is still active. In 2021, Covey told the San Antonio Heron that the project was on hold after being delayed due to difficulties raising capital.

Phoenix Development was founded in 2014 in Chicago and is led by John Mangel, who previously worked as an “imagineer” helping develop resorts for Disney, according to the Phoenix website. The company also builds hotels in Dallas, Milwaukee and Chicago.

Another new Residence Inn is in the works for San Antonio's urban core: Austin-based Merritt Development Group plans to build a 171-room Residence Inn by Marriott at 100 N. Main St., across from Main Plaza.

David Merritt, president and owner of the company, told the Report earlier this year that he was optimistic about San Antonio's hotel sector, even though downtown hotel occupancy rates remain below current levels. 'before the pandemic.

“We’re growing because we think there’s an opportunity,” he said. “San Antonio has struggled over the last nine months, that's for sure, but San Antonio's history over the past few decades has been strong. I am convinced that the market can support a new offer.