Major luxury hotel projects move ahead in Napa, 1,500 high-end rooms coming to Napa in the next decade

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Back Article published - May 19, 2008
BUILDING THE NORTH BAY: Major luxury hotel projects move ahead in Napa
Sonoma County also getting its share of mid- and high-end projects
by D. Ashley Verrill
Staff Reporter

NORTH BAY – With an estimated 1,500 high-end rooms coming to Napa in the next decade, the county is poised to become one of the nation’s most popular getaways for posh business trips and affluent vacationers – or at least county leaders hope so.

Hotel builders from around the globe have flocked to the valley to cash in on the increasing number of wine enthusiasts, and planners say hotel permit requests remain very active.

Of the hundreds of millions of dollars going into hotel construction, most are resort-style accommodations in the wine country or four-star rooms in downtown, and developers have not been shy about their hopes to attract upscale clientele.

Some worry the market could become saturated, but a recent study commissioned by the Napa Redevelopment Agency says not only will the rooms be occupied, but the city could even stand more growth in the meeting-space sector.

“Part of efforts have been to get quality hotel projects in downtown to increase pedestrian traffic. … The findings estimated that if all projects went forward, there is capacity in market to absorb those rooms and an additional 200 to 300,” said Jennifer La Liberte, senior project coordinator for Napa’s economic development department.

During the past year, more than $200 million in commercial projects have changed the landscape of downtown Napa, bringing foot traffic, business and increasing land values. Many downtown hotel projects have been in the permitting process for several years, but all will begin opening their doors within the year or in the next few years.

Two of the most highly anticipated projects include the 160-room Westin Verasa and the Avia hotel. The Westin will be a four-diamond hotel/condo with 700 square feet of restaurant and lounge space as well as 17,000 square feet of meeting space.

The 141-room Avia boutique hotel is expected to open next spring after breaking ground last fall. Formerly the Inn at Town Center, the $41-million project is a development by Kansas-based LodgeWorks.

The Meritage Resort in the Napa Valley Corporate Park plans to double its capacity by adding 160 rooms and they recently completed a 9,000-square-foot spa.

Outside city limits, the Villagio Inn & Spa in Yountville has completed most of its expanded spa. The facility is close to double the previous size and was moved from inside the main hotel building to an adjacent 13,000-square-foot building. The 112-room hotel also plans to transform the former spa into a business meeting and recreation facility.

Other construction in Yountville includes the 62-room Bardessono Inn and Spa, a 32-room expansion to the Yountville Inn and a new hotel by French Laundry restaurateur Thomas Keller.

Also outside downtown, HCV Pacific Partners are developing the 379-room Montalcino Resort in the southern end of the county. The project is expected to have a spa, 34,000-square-foot conference center and golf course. It is slated to open sometime in 2010.

In American Canyon, Napa Junction developers have plans for a 100-room hotel situated on the corner of the project that includes retail and housing. The Gaia Hotel and Spa, the country’s greenest hotel, also opened the doors to its eco-friendly spa recently and two other developers have plans for a Hampton Inn & Suites and Chardonnay Inn nearby. The Hampton is expected to have 119 rooms and the $8-million Chardonnay Inn and Resort will have 68 rooms.

In Calistoga, plans to transform and expand the Silver Rose Inn into the Terrrano Resort are well on their way and the Calistoga Inn & Spa and Roman Hot Springs Resort also have plans to expand.

Sonoma County Tourism Bureau President and CEO Ken Fischang described the county’s growth as healthy, with a reasonable amount of projects recently finished or in the works. “A healthy tourism economy is one where you have growth – we have three high-quality properties opening within six months of each other in three different cities,” he said.

In total, Sonoma County has about 580 rooms that are in the works or were recently completed in city limits, according to the Sonoma County Economic Development Board, and another 480 rooms are being built in unincorporated areas. Most of the projects are mid-range hotels, but some are upper-scale hotel expansions or buildings from the ground up.

On the top of those soon to be completed is the 92-room Hilton Garden Inn near the airport. Originally slated to open in 2006, the much-anticipated project is finally near to completion and should open within the year.

Another recently completed Hampton Inn & Suites in Rohnert Park opened its doors in October, and the six-room Weiler bed and breakfast in Sebastopol recently received its occupancy permit.

A small boutique bed and breakfast in Cloverdale is also on the list of recently completed projects. The five-room Domenichelli Farmhouse is rented by the room or the whole house and includes a pool, spa and sunroom.

The most upscale project at an estimated $600 night is scheduled to open sometime in 2009 in Healdsburg. The developers of the Saggio Hills project in Healdsburg have plans for a 130-room hotel in 33 separate buildings. The hotel is part of a 238-acre luxury resort that will also include residential homes, a spa and conference/meeting facilities.

Also in Healdsburg, the builders of the Hotel Healdsburg are planning a second 38-room Hotel Healdsburg 2, and another developer has submitted applications for a Garden Court Inn with 23 rooms.

Of the 22 projects outside of city limits, three are considered luxury resorts and the others are limited service or small bed and breakfasts. The largest is Sea Ranch Lodge in Sea Ranch, which will have 92 rooms.

Though Marin County doesn’t have a long list of projects, the National Park Service has leased a former U.S. Army base near the Golden Gate, where developers plan to spend about $118 million to transform it into a luxury hotel and spa, among other things.

Fort Baker in Sausalito will be transformed over the next year into the 142-room Cavallo Point – The Lodge at the Golden Gate.