Yesterday we reported on a new hotel development set for San Francisco. Today, though details are still scarce, it's becoming more evident that the project is big for the city, where barriers to entry are some of the highest in the U.S.
To recap: Strata Investment Group sold Mission Bay’s only hotel-zoned development site to SOMA Hotel, an affiliate of the Stanford Hotels Group, which owns and operates 13 hotels and has five properties under development in cities around the country. As the San Francisco Business Times writes, the 15-story, 250-room development, is reportedly set to become San Francisco’s first new luxury hotel since the Intercontinental Hotel opened next to Moscone West in 2008. Construction will start in late 2014.
It further opines that the hotel "could be San Francisco’s answer to the Rosewood Hotel, Silicon Valley’s legendary hub of venture capital deal making."
“We think it’s an amenity that the corner of San Francisco has lacked. We think it’s an exciting part of advancing the promise of Mission Bay,” said Michael Cohen, a partner with Strada Investment Group. “If done properly, that hotel has the potential to become a living room, not just for Mission Bay, but for all of brick-and-timber SoMa.”
The hotel, slated to open in 2016, will be part of a larger mixed-use development that Strada is building at the waterfront Mission Bay site known as Block 1. While Strada sold off the hotel site, it is holding onto the retail and residential component of the development, which will add 25,000 square feet of retail and 350 housing units, likely to be a mix of condos and rentals.
Hotel Management spoke with Will Gibbs, SVP of SOMA Hotel, who said that neither a brand, operator, designer or architect had yet been selected for the project. Since it is a mixed-use development, there could be some overlap in design construction, so the choice of designer and architect could take some time.
Either way, the development should be a profitable venture. “Downtown San Francisco is one of the most difficult cities for new construction, due to scarcity of land and high barriers to new construction,” Gibbs told the San Francisco Business Times. “This will be the first four-star, new-build hotel in the city’s urban core since 2008. The South of Market district is the city’s most dynamic location and there is a minimal presence of hotels there.”