July 21–Prior to the recent arrival of the Hampton Inn & Suites Boulder North, which opened recently in Gunbarrel, it had been eight years since a hotel was built in Boulder.

The time window for another new arrival is expected to be much shorter.

Three more hotels could pop up within the city of Boulder during the next 18 to 36 months.

The lodging boom might not result in much of a net gain in available rooms, however, it could result in pricier accommodations within the city, some say.

There are plans on the books to eventually redevelop two hotels on the city’s southern entryway — the Boulder Outlook Hotel and the Americas Best Value Inn — for more student housing. Additionally, two of the three planned new hotels will be built in place of the mid-priced Best Western Golden Buff Lodge off 28th Street and Canyon Boulevard.

Although the Americas Best Value Inn, 970 28th St., remains “open indefinitely” as the second phase of the Landmark Lofts development is stalled in a holding pattern, motel General Manager Kevin Ripley expressed concern about the demographics of Boulder’s hotel stock.

“What’s being squeezed out of the market is the economy brand,” said Ripley, who has managed the 970 28th St. property for 25 years and through three different owners.

As prices rise and lower-cost options dwindle, the dollar-conscious traveler might opt to visit Denver or stay along Interstate 25, he said.

“My market barely can afford to stay in Boulder and that’s going to be an issue in the future,” he said. ” … It eventually could hurt the tourist business in Boulder.”

Newest addition

The arrival of Boulder’s newest hotel had been a long time coming.

Gunbarrel, home to 10,000 people, serves as the base of operations for some of Boulder County’s largest employers. The city of Boulder’s master plan for its Gunbarrel area calls for a denser, mixed-use retail core to complement the residential

and industrial options already in place.

The existing lodging options in the area include the 33-room Boulder Twin Lakes Inn and the 13-room Lookout Inn Guesthouse and Suites bed and breakfast.

Considering its present state and the future proposals, Gunbarrel was “woefully underserved” in hospitality options, said Bill McDermid, of Boulder Hospitality LLC.

Boulder Hospitality LLC, the developer and owner-operator of the Hampton Inn & Suites Boulder North, filed plans with the city of Boulder in 2007 for a 100-room hotel and three neighboring buildings that could house retailers, restaurants or offices.

At that time, McDermid and Boulder Hospitality had Hampton Inn and financiers on board for the Gunbarrel Gateway mixed-use project set for the former Hugh M. Woods at 6333 Lookout Road.

When the financial markets seized a year later, McDermid’s banking backers got cold feet and Gunbarrel Gateway stalled.

McDermid spent the subsequent years scrounging for financing, but never fully doubted the future of Gunbarrel Gateway. His Boulder Hospitality firm remained strongly propped up by its hotel properties in El Dorado Hills, Calif.; Scottsbluff, Neb.; and Torrington, Wyo.

“We could be patient,” he said.

As the economy recovered, the pieces came together for Boulder Hospitality and construction started last year on the Hampton Inn & Suites Boulder North.

The hotel marked its grand opening on July 1 and Boulder Hospitality is in negotiations with potential occupants of the adjoining pad sites.

“We got through,” he said. “Unfortunately, it took just a little bit.”

The 100-room Hampton Inn is a “select-service” hotel, meaning its amenities — such as free hot breakfast, pool and a fitness room — fall in between a limited-service, or budget inn, and a full-service lodging facility. The Hampton Inn has two conference rooms, including an 874-square-foot meeting room that can seat 60 people.

The Hampton Inn’s locale and amenities could lend to a steady stream of business traveler traffic through the weekdays, McDermid said. The country clubs and event reception areas in neighboring Boulder, Niwot and Longmont could help drum up

weekend business, he added.

More to come

The triad of new hotels that could open within Boulder in the next three years currently is in the hands of local developer Scott Pedersen, of Pedersen Development Co.

A 140-room Hyatt and an underground bus station are slated to anchor Depot Square at Boulder Junction. Depot Square, which also includes a mix of permanently affordable and market rate apartments, will serve as a key component of the 160-acre Boulder Junction, a multi-modal mixed-use community.

Groundbreaking at the 3151 Pearl St. site is expected to occur within a week, Pedersen said. The construction timeline for the completion of Depot Square is 18 months, he added.

The timetable of Pedersen’s other two hotels is more uncertain.

Pedersen’s development company is fully entitled to build a full-service, 184-room hotel and a 177-room, select-service hotel at the current site of the Best Western Golden Buff Lodge, at 1725 28th St. near Canyon Boulevard. The city of Boulder gave the go-ahead for the hotels and a neighboring mixed-use commercial building earlier this year.

Pedersen moved forward with the site review process independent of having a hotel signed onto the project. By doing so, he said, he was able to get the entitlements and a bit of leverage when negotiating with the hotels.

“More than one hotel brand would like to be on the site,” Pedersen said. ” … We don’t want to lock somebody in too early in the process.”

After conversations with potential hotel operators, he is weighing some changes.

Among the modifications being considered are “flip-flopping” the full-service and extended-stay hotels on the property, adding more rooms to the full-service hotel, increasing the square-footage of the ballroom and bulking up meeting space.

“We’re running through all the numbers and trying to figure out what makes the most sense,” he said.

If changes are made, Pedersen’s firm will submit a minor site review amendment to the city. The new plans would require Planning Board approval.

Some to lose

The changes to Boulder’s hotel landscape are coming at a time when the city’s hospitality industry has rebounded from the economic downturn and occupancy levels are surpassing those notched in pre-recession times, said Mary Ann Mahoney, executive director of the Boulder Convention and Visitors Bureau.

Through May, Boulder’s average occupancy rate was 62.8 percent and the average room rate was $119.55, she said.

During the same period in 2007 — the “healthiest year” for the industry in Boulder — the city’s hotels had an average occupancy rate of 62.3 percent and an average room rate of $105.44.

“It took until 2007 for hotel rooms to go through the rate recovery; (during the) recession in 2001 and 2002, rates dropped dramatically,” Mahoney said. “During the recession (of) 2008 and 2009, the rate didn’t drop as dramatically. The recovery didn’t take as long.”

The additional rooms and meeting space could be critical in luring groups and business travelers during Boulder’s slow months, she said. Her office remains in discussions to attract conferences and sports groups, such as the St Kilda Football Club and USA Track & Field.

“We’re feeling this good, solid occupancy, but we have to make sure the consumer still feels they’re getting a good value,” she said.

Steven Wallace, general manager of the Best Western Plus Boulder Inn, started seeing a return in guests in 2011 and said his business has fully returned since the recession.

The new hotels — which could come with higher room rates because of the cost to develop in Boulder — could help boost city coffers, but Wallace doesn’t anticipate much of an effect on his business.

The arrival of the Hampton Inn and the three other planned hotels also doesn’t necessarily result in a boom in hotel rooms for the city, he said.

The two hotels planned for 28th and Canyon would be built in place of the existing 112-room Golden Buff. The Americas Best Inn is being eyed for redevelopment into apartments and the operators of the Boulder Outlook Hotel are expected to finalize a deal later this year to sell the 165-room hotel.

“You take all those out of the market, it’s pretty much a wash,” he said. “All it really does is it eliminates mid-range and budget (options).”

American College Communities is under contract to purchase the Boulder Outlook Hotel, 800 28th St., said Dan King, the hotel’s operator.

“The price was right,” King said. “That was the sole factor.”

American College Communities has submitted a concept review application to the city for the development of a four-story building on the site. The proposed building is expected to house 100 four-bedroom, four-bathroom apartments that would be marketed toward college students.

King, who served as a hotel consultant for several years prior to operating the Boulder Outlook, said he expects that once the Hyatt and other two hotel properties open, the existing hotel operators might end up raising their prices.

“They’ll still look affordable,” as compared to the newer offerings, he said.

Contact Camera Business Writer Alicia Wallace at 303-473-1332 or wallacea@dailycamera.com.