May 30–PALO ALTO — The city’s thirst for hotels shows no signs of being slaked with two more proposed near the Mountain View border.
The AC and Courtyard by Marriott would add a total of 301 rooms on the 700 block of San Antonio Road, according to a report by Jonathan Lait, assistant director of the city’s Planning and Community Environment Department. The Architectural Review Board is slated to review the project Thursday.
The hotels, if approved, would join a parade of others that have either opened recently or are under construction.
Homewood Suites by Hilton, located at the former Palo Alto Bowl site, welcomed its first guests in March. It was preceded by The Epiphany Hotel, which replaced Casa Olga at 180 Hamilton Ave. last year.
The Westin Palo Alto at 675 El Camino Real, meanwhile, is in the midst of building an annex.
The project proposed by Marriott would merge 744 and 748 San Antonio Road into a single 1.9-acre parcel, supplanting a 20,775-square-foot building that is used for offices and a 10,800-square-foot building that is used for automotive repair and general business services, according to the report.
The hotels would be distinct from one another. Lait noted that “the AC hotel concept is known for providing ‘ultra-modern’ design and sophistication, while the Courtyard concept is known for providing a more contemporary design.”
According to the report, the project needs special approval as it provides just 235 of the 301 required parking spaces. Ramps to an underground garage would also encroach on a mandatory 24-foot setback.
Another potential obstacle lies in the city’s housing element, which identifies 744 and 748 San Antonio Road as a place to build 38 to 57 homes.
“If the site … is developed as a non-housing project, an alternate site must be found to meet the housing need,” Lait wrote.
The city is banking on the red-hot market for hotels to help fund a slew of much-needed infrastructure projects, including a new public safety building. Last November, voters approved a measure to increase the tax on hotel rooms from 12 percent to 14 percent. The hike took effect on Jan. 1.
According to the proposed fiscal year 2016 budget, the city expects to collect about $18.8 million in transient occupancy taxes. That’s 32.4 percent, or $4.6 million, more than in fiscal year 2015. The budget noted that “a vibrant business and tourist environment has led to a surge in hotel bookings from San Francisco down through the Peninsula to San Jose.”
The Architectural Review Board meeting is scheduled to begin Thursday at 8:30 a.m. in the council chambers of City Hall, 250 Hamilton Ave.
Email Jason Green at [email protected]; follow him at twitter.com/jgreendailynews.
