Joel Burgess

jburgess@citizen-times.com

ASHEVILLE - Everyone knows there’s a hotel boom going on downtown, but just to the south in the Biltmore Village area there's an echo of that construction surge with more than $30 million planned in new lodging facilities.

Four new hotels would add 468 rooms to the market at the doorstep of two red-hot tourist destinations: downtown and the Biltmore Estate.

Two are in the planning stages, one on Meadow Road in a lot across from Asheville Area Habitat for Humanity, and another in a commercial cluster of restaurants and offices at the corner of Hendersonville Road and Thompson Street.

Two others are already under construction on the sites of former hotels — one on the east side of Hendersonville Road and one on the west.

The projects are occurring in a citywide atmosphere of big profits and big conflict for hotels. Following voter pushback over the number of new hotels, the City Council in February voted to greatly increase scrutiny of proposed lodging facility projects. That's led hoteliers to keep their heads down — but also to try to keep building, with the promise of millions of dollars in annual sales.

Hoteliers involved with the four projects didn't respond or declined to talk on the record about reasons they picked the Biltmore Village area.

Laura Mahan, who has owned the Compleat Naturalist shop with husband, Hal, for 25 years in Historic Biltmore Village, said she's never seen this type of planning and construction, which also includes an apartment complex just to the east.

Unlike many residents who've said the downtown hotel boom is changing Asheville for the worse, Mahan said businesses would be happy to have more tourists staying nearby.

"I think we see it as a positive in general," she said.

"The more dollars coming in, the more we can do and the more support for local independent businesses, which is what we are. It’s hard to be an independent retailer nowadays."

Asheville downtown hotel boom to break $187M

A taller hurdle for new Asheville hotels

If the Biltmore Village area is defined as everything within half a mile of the center of the historic village, there are six hotels.

That compares to nine downtown (with six more in the works) and about a dozen on Tunnel Road, depending on how far east a potential customer would drive along that commercial corridor from the city center.

Biltmore Village area room rates fall between high-end downtown and lower-priced Tunnel Road. A room from March 24-25 ranged from $170-$349 among the six hotels, according to a search on Kayak.com, topping out with the Grand Bohemian Hotel Asheville.

That compares to $449 charged by the downtown Hotel Indigo for that Friday and Saturday, $399 for a hotel on the Biltmore Estate and $199 for the most expensive Tunnel Road lodging.

It's not clear what the four new hotels would charge, but the money being put into them show hoteliers' high hopes.

Under construction south of the village are the Holiday Inn & Suites costing $5.3 million for 118 rooms at 190 Hendersonville Road near the Arby's restaurant and the Hampton Inn Biltmore costing $9.6 million for 118 rooms at 117 Hendersonville Road.

The Holiday Inn is being built by a limited liability corporation managed by Ushakant Patel of Asheville. The Hampton Inn project is being done by Biltmore Farms, LLC, a development company run by Vanderbilt heir John Cecil.

The other two projects are being planned north of the village. A Courtyard by Marriott would go on property across Meadow Road from Asheville Area Habitat for Humanity and would cost $14 million for 112 rooms, according to developer Monark Patel, who owns several other hotels through the Milan Hotel Group.

Biltmore Station Hotel would go in a commercial cluster on the east side of Hendersonville Road. Baywood Hotels of Greenbelt, Maryland said there isn't a construction estimate yet for the 120-room facility.

Construction costs are lower than those downtown, where the AC Hotel at the corner of College and Broadway streets is expected to run $24 million and the renovation of the BB&T building into the Hotel Arras is estimated at $46 million.

The most notable hotel project completed in the Biltmore Village area over the last decade was the four-story English Tudor-style Grand Bohemian. The Marriott "Autograph Collection" hotel spans 135,000 square feet.

Asked about why the location was picked to open the hotel in 2009, the parent company issued a statement saying it has long been a tourist destination.

"Biltmore Village is home to both national retail outlets and one-of-a-kind independent shops," said the statement by General Manager John Luckett sent by a company spokeswoman. Luckett noted the "excellent variety" of restaurants and breweries.

"The proximity to Biltmore Estate, Blue Ridge Parkway and downtown Asheville makes it appealing for tourists visiting Asheville and future hotel developments."

Mahan said she thought the village, which was built as a self-contained place to live for workers of the Biltmore Estate, has ramped up interest in hotel building.

"It's such an interesting place history-wise since we have buildings over 100 years old and there's our connection to Biltmore itself," said the shop owner.

City Principal Planner Shannon Tuch was less surprised than others by the hotel surge.

"It's not at all unusual for us to see a little flurry," said Tuch, who's been in the city planning department for 15 years. "We also will occasionally find out there is a strong market for grocery stores, then apartments, then hotels."

She said the recent push might have something to do with hoteliers anticipating more scrutiny and tougher rules by the council.

On Jan. 24, the council unanimously voted down a proposal by Raleigh-based Parks Hospitality Group to build a $24-million Embassy Suites downtown next to a $14 million Hyatt Place opened by the company in March 2016 on Haywood Street. The new hotel would have had $8 million in annual sales, according to figures presented by a consultant brought in by the developers.

On Feb. 14 the council members voted to change development rules so that any lodging facility with more than 20 rooms had to come to them for a green light before construction could start.

Before that, hotels were treated like other development projects, with only the biggest needing to go to council for approval.

That was in large part a response to voters and other residents who said the economic benefits of hotels didn't make up for their other impacts.

One person who disagrees with that sentiment is Ronnie White, owner of A&B Tire and Wheel to the east of the village on London Road.

White said along with the hotels there are new breweries being built near his business.

"It's going to be congested," he said. "But I think it's going to be good for the economy."

"Things have got to change, so just go with it."

Planned Biltmore Village area hotels

Courtyard by Marriott, 26 Meadow Road (In early planning stages. Approved by city Technical Review Committee with conditions. Still needs approval by Asheville Area Riverfront Redevelopment Commission and city Planning and Zoning Commission. Possible construction start at end of year with opening in early 2019.)

$14 million, five stories, 112 rooms, 74,000 square feet. Planned by Milan Biltmore, LLC. Monark Patel of Asheville is the developer and company vice president. Milan owns the 3.1-acre site across from Asheville Area Habitat for Humanity which is valued at $683,900. Through the Milan Hotel Group Patel owns the Super 8 at 180 Tunnel Road, Country Inn & Suites at 199 Tunnel Road, Clarion Inn at 234 Hendersonville Road and the Fairfield Inn & Suites under construction at 184 Tunnel Road and opening in August.

Biltmore Station Hotel, 29 Garfield and 61 Thompson streets (Won final approval by Planning and Zoning Commission. Construction set to start in summer.)

Four stories, 65,000 square feet, 120 rooms. Planned by Baywood Hotels of Greenbelt, Maryland. No estimated construction cost. The 6.1-acre site is near Ichiban Japanese Steakhouse and Jimmy John’s Gourmet Sandwiches. The land is owned by CFAP Biltmore Sub, LLC of New York and valued at $5.7 million.

Holiday Inn & Suites, 190 Hendersonville Road (Under construction. No opening date given.)

$5.3 million, 6 stories, 118 rooms, 76,276 square feet. Being built by Butel, LLC, with a managing member Ushakant Patel of Asheville. The 4.1 acres near Arby’s was the former site of a demolished hotel. The property is owned by Butel and valued at $1.9 million.

Hampton Inn Biltmore, 117 Hendersonville Road (Under construction. Planned to open in May.)

$9.6 million, five stories, 118 rooms, 74,133 square feet. Being built by Biltmore Farms, LLC, of Asheville whose president is John Cecil. The 4.2-acre parcel was the site of a demolished hotel. Property is owned by Biltmore Farms and valued at $2.6 million.

How much for a room?

Friday, March 24-25 (10 days in advance) one room with two guests on Kayak.com (Note: Several were sold out March 17-18, including Grand Bohemian)

$349 - Grand Bohemian Hotel Asheville, 11 Boston Way

$239 - Double Tree by Hilton Hotel Asheville - Biltmore, 115 Hendersonville Road

$219 - The Residences at Biltmore, 700 Biltmore Ave.

$209 - Residence Inn by Marriott Asheville Biltmore, 701 Biltmore Ave.

$170 - Baymont Inn & Suites Asheville/Biltmore, 204 Hendersonville Road

$170 - Clarion Inn Biltmore Village, 234 Hendersonville Road

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