(Updated at 5 p.m.) Development of a Holiday Inn Express in the former Towne Motel property in Old Town North has been suspended, the city tells ALXnow.
It appears the cost of construction was getting too great and the owner was not able to secure financing for the project at 802 N. Washington Street.
“The property owner reported to City staff that progress on the project has been suspended,” City spokesperson Camila Olivares said. “Among the challenges are construction pricing and financing availability.”
The news comes years after a historic townhouse at the site was lifted and moved to make way for the hotel. The townhouse, which was built in 1910, was supposed to be moved back to be integrated into the new hotel, according to Architecture Incorporated.
Plans for the 72,000-square-foot, 98-room hotel were released in 2020 and the project was initially scheduled for completion by 2022, according to 2021 Old Town North Small Area Plan.
The property owner did not return calls for comment.