Developer Plans TownePlace Suites Hotel and Restaurant in Mariposa Amid Financial Challenges

The City of Nogales held a regular meeting on September 3, 2025, where significant discussions centered around a proposed hotel development project. The project, a TownePlace Suites, is planned for a site on Mariposa, near the border crossing. The proposed hotel will feature 99 rooms, approximately 2,500 square feet of meeting space, a lobby bar, a fitness room, and an outdoor barbecue area.

The developer highlighted the challenges faced in the current economic climate, including high inflation and rising interest rates, which have made securing funding for new hotel projects increasingly difficult. Traditionally, lenders would finance about 80% of a project, but now they are only willing to cover 50% to 60%. This financial strain has contributed to a slowdown in hotel construction nationwide.

In addition to the hotel, the developer expressed intentions to build a standalone fast-casual restaurant on the same parcel, seeking suggestions for a recognizable regional or national franchise. The developer emphasized the potential economic benefits of the hotel, including job creation and increased sales tax revenue for the city.

The meeting also included a presentation of projected tax revenues generated by the hotel, estimating that the TownePlace Suites could generate approximately $3.2 million in tax revenue over its first ten years of operation. The developer proposed exploring sales tax rebate programs as a means to make the project financially viable, suggesting that such incentives could create a mutually beneficial agreement between the city and the developer.

Overall, the discussions underscored the importance of collaboration between the city, county, and private partners to bring the TownePlace Suites project to fruition, highlighting its potential to enhance the local economy.