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Feasibility study finds market for a boutique hotel in Auburn; council urged to market sites to developers
Summary
A consultant hired by the city said a boutique, outdoors-and-wellness-focused hotel could attract multi-day visitors and higher room rates; the study modeled both an infill conversion (—25 keys) and a new 80-key courthouse-area development and recommended targeted marketing to investors.
A market feasibility study commissioned by the City of Auburn concluded the city could support a small, higher-end boutique hotel that leans on Auburn's outdoor recreation and culinary assets.
PKF hospitality consultant Channing Henry presented the findings, telling council, "we found so much charm in Auburn," and said two scenarios were modeled: an adaptive reuse of a downtown promenade building (about 25 keys) and a larger assemblage site adjacent to the courthouse (80 keys). The study modeled weekend and midweek demand, rates and revenue under conservative assumptions and included comparable case studies from regional boutique properties.
The study found a leisure-driven market: multi-day weekend getaways, outdoor/endurance events, culinary and wine tourism and remote-work visitors likely to pay upper-midscale to upper-upscale rates. For the marquee infill scenario (25 keys), the consultant estimated a stabilized average daily rate (ADR) in the upper-$200s to mid-$300s range and substantial food-and-beverage revenue; the larger 80-key courthouse assemblage scenario was modeled with higher banquet and events revenue and a projected internal rate of return attractive to institutional investors under certain financing assumptions.
City Community and Economic Development Director Jonathan Wright told council the study was intended to give prospective developers a feasibility package and that PKF was selected in part because of prior regional experience. Councilmembers discussed potential sites already known to be of interest to landowners (a promenade building and parcels near the courthouse) and asked how the city could help market parcels and package opportunities. Wright said staff would seek to include modest marketing funds in the next fiscal year's budget to promote the opportunity to developers.
Council members generally praised the study and discussed next steps including targeted outreach to hotel developers and revisiting city-owned or assemblable parcels as potential sites. No formal action to pursue acquisition or to commit city dollars for a project was taken at this meeting; the study was presented for council direction and discussion.
