2534 getting another hotel
Homewood Suites by Hilton going up in development
BY PAT FERRIER
PatFerrier@coloradoan.com

October 9, 2007

A new Homewood Suites by Hilton may soon be going up on the southeast corner of Interstate 25 and U.S. 34.

Intermountain Management LLC recently paid $1.5 million for 2.5 acres in the 2534 development in Johnstown.

When completed in spring 2009, the hotel will join a crowded field of hotels recently opened or under construction.

The area has roughly 800 rooms, including John Q. Hammons' Embassy Suites being built at Larimer County's fairgrounds and the new Holiday Inn Express, both north of the interchange.

The question of how many hotel rooms are too few and how many are too many will only be answered with time.

Nick Christensen, principal with Chrisland, which represented seller Location, Location, Location, LLC, said Homewood Suites - an extended-stay hotel - would serve Medical Center of the Rockies and Northern Colorado Rehabilitation Center, both of which generate "a lot of room nights."

"The rehab hospital often has patients there for extended stays ... it is nice for their loved ones to come in and spend up to several weeks" at the extended-stay hotel.

The hotel, which will closely resemble the Homewood Suites that opened this year in Fort Collins, will be situated just south of the existing gas station and convenience store. An abandoned house will be razed "and the area will get cleaned up," Christensen said.

Shawna Brown, director of sales and marketing for Louisiana-based Intermountain Management, said the location is ideal "with all the business growth and retail moving into that area."

Chad McWhinney, principal for the developers of Centerra, said hotels there continue to perform well. "But I'm always concerned about any product type getting overbuilt. ... In business cycles supply and demand over time will always balance out. We just need to make sure we all stick to our visions and do what is prudent."

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