It seems that the Scottsdale SkySong development will be getting a Starwood-brand hotel very soon. The news about the upcoming hotel was first announced by the officials of Arizona State University Foundation in the early part of July. However, they needed the approval of the City Council. With a 6-1 vote held on July 6th the Council signed off on the project. The opposing vote was cast by Councilman David Smith. The criticism that Smith had was related to how SkySong was straying away for its initial purpose of being a technology center.
The Mayor of Scottsdale, Jim Lane, said that even though he first opposed the SkySong project (on similar concerns that Smith shared) the development of hotels were always a part of the agreement.
According to Don Couvillion, the vice president of real estate for the ASU Foundation, the upcoming hotel is expected to be a Starwood brand. He also went on to say that the developer of the hotel paid $75,000 for a franchise agreement with Starwood and wants to move forward with the project in order to not face problems due to Starwood’s merger with Marrriott International.
If the ASU enters a lease with the developer of the hotel by the 6th of July, 2017, the foundation is expected to pay around $42,000 per year to the city as rent for the 100,000 square foot hotel.
Westin, Aloft, Sheraton, and Elements are included in the Starwood’s brand. However, it has not been announced which brand will be opening at SkySong. It is confirmed that the hotel will have 120 rooms and the restaurant on the ground floor will be open to the public.
The CEO of Plaza Cos., Sharon Harper, said that since the inception of the complex they have planned for a hotel as it will attract more national and regional business.
SkySong was launched back in 2004. It was joint venture with ASU, Scottsdale, and Plaza Cos. A total of $40 million was paid by Scottsdale for nearly 40 acres of land. The first two office buildings opened up in 2008. An apartment complex (325-unit) opened in 2014 and this was followed by a third office tower in 2015. A fourth office building along with a restaurant complex is under construction.
The Greater Phoenix Economic Council shared a recent analysis in which SkySong is predicted to have an economic impact of $32 billion, and in 30 years is expected to generate more than 10,000 jobs.
