Two more hotels are coming to InterQuest on Colorado Springs’ far north side, one of the city’s hottest commercial areas that’s already home to a half-dozen lodging properties.
A four-story, 119-room Hyatt Place is planned for nearly 13 acres in the Victory Ridge development southeast of InterQuest and Voyager parkways, according to a proposal submitted to city officials by Mission Hill Capital, a Springs-based private equity firm and Hyatt franchisee.
The hotel would be built south of retail development taking shape along Voyager in Victory Ridge, which includes the city’s first In-N-Out Burger that’s under construction and scheduled to open this year.
Meanwhile, Genesis Cos. of Kansas City, Mo., a real estate management, development and construction company, plans a four-story, 122-room Woodspring Suites in InterQuest Commons, southwest of InterQuest and Voyager, according to plans the company submitted to city officials. The hotel is targeted to open in February.
The Hyatt represents a shift in direction for a portion of the 153-acre Victory Ridge project, which is being developed by Westside Investment Partners of suburban Denver.
National Healthcare Realty, a Denver-based brokerage and developer of medical properties, had planned a pair of 40,000-square-foot medical office buildings and a wellness hotel at Victory Ridge.
But after Centura Health said it would build a third Colorado Springs hospital southeast of Interstate 25 and InterQuest Parkway, National Healthcare scrapped its Victory Ridge buildings, said Jecoah Byrnes, National Healthcare’s president and CEO who’s also Mission’s Hill’s managing partner.
Instead, National Healthcare now plans a single, three-story, 65,000-square-foot medical office building southeast of InterQuest Parkway and New Allegiance Drive, across the street from the new hospital site and in the InterQuest Town Center project.
“Some of the tenants that we had been working with for our medical buildings wanted to be closer to that hospital versus being in Victory Ridge,” Byrnes said.
The Hyatt Place now will go up on the Victory Ridge site where the medical buildings had been planned, he said. Mission Hill expects to complete purchase of the site and start construction in the first quarter of 2021 and complete the project in the fall of next year, Byrnes said.
Hyatt had been seeking a partner for a new Hyatt Place in town, Byrnes said. The city’s only Hyatt Place is at I-25 and Garden of the Gods — an older property that had been remodeled, Byrnes said.
Hyatt Place, one of several Hyatt brands, offers larger rooms than many hotels, along with sectional sleeper sofas, dedicated work spaces, fitness centers and pools.
The hotel at Victory Ridge will employ a new prototype design with revamped guest rooms, bathrooms and lobbies, according to online descriptions of the properties.
The new Hyatt also will have 5,000 square feet of meeting space, and a larger pool and gym, Byrnes said. The pool will be inside, but roll-up doors will open to link indoor and outdoor spaces for pool users, he said.
Hyatt Place and Woodspring Suites would join Great Wolf Lodge, Drury Inn & Suites, Hampton Inn, Holiday Inn Express & Suites, Residence Inn and SpringHill Suites in the InterQuest area, which is also home to restaurants, stores, movie theater complexes, The Summit entertainment venue, apartments and offices.
In addition to Centura’s hospital, Ent Credit Union is constructing a 300,000-square-foot corporate headquarters at InterQuest. Outdoor retailer Scheels All Sports also will open a massive 220,000-square-foot store in the area next year.
Though InterQuest has several hotels, Byrnes said the area isn’t being overbuilt.
Mission Hills’ market research found that InterQuest-area properties remain in demand year-round, not just during the summer vacation season, he said.
Colorado Springs also remains a popular destination for travelers, as evidenced by a hospitality industry report last week that showed Springs hotels with the nation’s highest occupancy rate for portions of July and August, Byrnes said.
The Springs’ north side also is home to United Healthcare, Bal Seal Engineering and other major employers, Byrnes said. And, Mission Hill has purchased and is completing a partially constructed, four-story office building at Victory Ridge, where Progressive Insurance has agreed to lease 18,000 square feet for a claims center.
“With Ent and Centura and In-N-Out and even frankly some of the employers that we’re talking to come into our office building, we think the nonseasonal demand is just going to continue to grow and the business traveler is looking for a product like Hyatt Place,” Byrnes said.
Genesis officials couldn’t be reached for comment on the Woodspring Suites project. The company’s website shows it has built a Hampton Inn and Homewood Suites in Colorado Springs.
Woodspring, an extended-stay brand that has two locations in the Springs, offers large rooms with kitchens that feature full-sized refrigerators and freezers, two-burner cook tops, microwaves, sinks and counter space.