The Hotel Boom

Close on the heels of the Westin is the Ivy Hotel and Residence, part of the renovation of the historic Ivy Tower site adjacent to the Minneapolis Convention Center. The project, slated to open in fall 2007, will have 136 hotel rooms and 86 condominiums and be operated as part of the Luxury Collection, owned by New York–based Starwood Hotels & Resorts Worldwide, Inc., which also owns the Westin, W, and Four Points Sheraton brands.

Also in the works is a 155-room property at 900 Washington Avenue South to be called Aloft, with adjacent condos called Zenith. Minneapolis-based Sherman Associates is developing the property, which reportedly will target a younger audience that favors hip yet affordable style. “That project’s filling a younger niche, on a tight expense account,” Burnet says.

In addition to the projects already in the pipeline, Burnet announced plans in June to convert the Foshay Tower into a full-service hotel. Though the Foshay redevelopment was originally rumored to include condominiums, Burnet said it will be a hotel-only property. “The footprint at the Foshay didn’t lend itself to housing,” he says. The art-deco style office tower, which was the tallest building in Minneapolis from its opening in 1929 until the IDS Center was completed in 1973, was modeled after the Washington Monument. “Its history is amazing, but it’s a challenging building,” Burnet says.

Also in the planning stages is the 401 Hotel, a 200-room property slated for the former Midland Bank building at Fourth Street and Second Avenue South in downtown Minneapolis. The developer of 401 is Best & Hempel, LLC, Minneapolis; St. Paul–based Morrissey Hospitality Companies, which operates the Saint Paul Hotel, will manage the property. “We’re looking to be an upscale, independent, stylish, lifestyle hotel,” says William Morrissey, president of Morrissey Hospitality.

In the Warehouse District, John Rimarcik, owner of the 100-year-old building at Washington Avenue and Third Avenue North that houses his Monte Carlo Bar & Cafe, has signed an agreement with a New York–based developer Fred Deutsch. They plan a major redevelopment named Pacific Flats for the block surrounding the building, which will include an upscale 150-room hotel, condominiums, and commercial space.