A market study presented to the Petersburg City Council work session on Oct. 7, 2025 concluded that downtown Petersburg could support an additional hotel — roughly a 90‑room, upper‑midscale or upscale select‑service product — and that a second downtown hotel would serve different demand than the casino’s on‑site lodging, potentially complementing neighborhood redevelopment and group business demand.

Brian David (economic development consultant) introduced a desktop analysis prepared by a hospitality market specialist that used proprietary market data (CoStar) and a regional market set. The consultant concluded a downtown hotel could reach occupancy near 65% based on current and forecast demand drivers, including Virginia State University, Fort Lee, the pharmaceutical/manufacturing cluster and visitors to the casino and the Interstate 85/95 corridor. David said the presence of a Marriott Courtyard at a nearby power center would not eliminate downtown opportunity and could help create critical mass for group bookings and event space over time.

The consultant’s work was a desktop analysis that cost $6,000 and used data subscriptions and market models rather than an on‑site inspection. Several council members asked about that methodology. Councilman Cuthbert asked whether a 65% occupancy assumption equated to a breakeven point for a full‑service hotel: “Is that a a breakeven rate for a full service hotel? 65%?” he asked. David and staff said the desktop effort is an initial, lower‑cost step to test market feasibility; they said a more detailed, on‑site pro forma would usually follow if developers express interest.

David and staff discussed hotel sizing and brand types with the council; the consultant suggested a 90‑room branded product was a “sweet spot” for interest from national flags and noted potential interest from brands in the upper midscale to upscale tiers. David said a mix of a Courtyard (power center), the Hotel Petersburg (Tapestry by Hilton) and a third downtown property could create a cluster of rooms and enable event space and parking solutions that would increase group demand.

Council and staff also discussed downtown improvement efforts. City Manager Altman reported ongoing infrastructure and site work — repaving of parking near the farmers market, masonry and chimney repairs to the Commonwealth’s Attorney building, additional trash receptacles ordered for downtown, and other preparatory work — and said some work is below the surface and not immediately visible. Altman said the city is “targeting a November opening and grand opening ribbon cutting” for a visitor information center in the Suicide Depot building and gave Nov. 14 as the tentative ribbon‑cutting date.

Council members pressed for continued outreach to developers, asked for deeper financial modeling where appropriate and requested follow‑up engagement as private projects (including the power center and Cordish casino-related development) progress. Staff said the desktop study is a first step and that a developer‑driven pro forma and site visits would typically follow.