Vancouver-based developer Vesta Hospitality is one step closer to building a 160-room AC Hotel by Marriott at the Port of Vancouver’s Terminal 1 waterfront development.
On Tuesday, the port’s Board of Commissioners approved a lease with Vesta for a term of 50 years with two 15-year options.
Vesta already has $40 million in financing secured for the new hotel, which will be situated on “Block D” of the port’s Terminal 1 property. The block is located just east of the $1.5 billion mixed-use development known as The Waterfront Vancouver.
“Vesta Hospitality shares our vision for Terminal 1 as a premier local destination, a place where neighbors and visitors are welcomed to the waterfront to enjoy all that’s great and unique about Vancouver,” said port CEO Julianna Marler. “We’re thrilled to have them as partners and look forward to breaking ground next year.”
AC Hotel by Marriott is marketed as a European-inspired lifestyle brand, which migrated to the U.S. for the first time in late 2014. The region’s first AC Hotel by Marriott opened in downtown Portland earlier this year.
“We’re really pleased to be working with the port and excited about building this type of hotel in Vancouver,” said Vesta Hospitality Chairman and CEO Rick Takach in a press release. “It’s different than anything else we have in Vancouver, and I’m happy to bring a new asset to my hometown. Vesta’s based here, I live here, and we’re excited to expand here.”
Construction on the project is expected to begin in 2018 and be complete in 2019.
According to the port, at full build-out Terminal 1 will provide nearly 950,000 square feet of new mixed-use development, create 800 new jobs to support commercial activity, drive construction investment of more than $200 million and generate nearly $93 million in state and local taxes over a 25-year period.