The Clinton Herald, Clinton, Iowa

Local News

March 9, 2011

New hotel coming to Clinton

CLINTON — A national hotel chain has agreed to fill a void left last fall in Clinton.

Hawkeye Hotels Senior Vice President Ravi Patel confirmed Tuesday that a Hampton Inn by Hilton will be housed near the Wild Rose Casino and Resort, toward the corner of U.S. 30 and Mill Creek Parkway. Construction will begin in May and Patel indicated it takes about 10 months to complete.

The new 76-room hotel will attempt to make up for the lost hotel space left by Ashford Univer-sity’s purchase of the Best Western Frontier Inn last fall. The Frontier Inn had 113 rooms.

“There were rooms lost in the market,” Patel said. “There is pent-up demand with some local demand generators, but that’s not the only reason we did it. We developed in Clinton because there is a need for a premium branded hotel.”

Talks regarding the two-acre piece of land stretched about six to nine months. The land has been for sale for a couple of years and the expansion toward the west part of Clinton looks to be on the rise again, Steve Howes, of Howes & Jefferies, said.

“It’s been tough economic times for people,” Howes said. “They have not been expanding, but we are starting to see some movement and interest in the lots in the area, which is a positive for the community.”

The approximate $3- to $4-million facility will include a pool, an expanded fitness center, spa and meeting rooms that can hold approximately 80 people.

Adding a hotel will not only generate a local buzz, but also add to Clinton’s national marketing abilities, Clinton Area Chamber of Commerce President Julie Allesee said.

“These rooms will make up a good portion of the rooms lost by the Frontier’s sale,” Allesee said. “It also puts us (76) rooms closer to host larger events and group meetings.”

Although the full impact of the loss of hotel/motel tax through Frontier’s sale will not be known until later, Allesee said they’ve cut their budgets in anticipation of lower tax revenue.

“The Frontier, because of their banquet rooms and amenities, charged a different rate,” Allesee said. “All that has to be weighed (when looking at the tax). But the addition of a hotel is good news. In a couple of years, we can fill those rooms and we’re anticipating some turnaround.”

A lasting economic impact of about $100 million is expected over 20 years, Patel said.

This isn’t the only hotel currently being developed by Hawkeye Hotels in Iowa. A new building will open soon in Ottumwa, while a nearly identical facility recently opened in Muscatine. Hawkeye Hotels owns structures in 11 states.

“We have an unorthodox approach,” Patel said. “It’s the Warren Buffett philosophy. We invest when no one else is investing. That’s worked out very well for us.”

The Hampton Inn will employ 20 to 22 employees, Patel said.

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