April 13--Pending city approval and permitting of a major development plan, a full 10 percent of hotel rooms in Key West will go off the market for a proposed $30 million makeover.

J.L. Woode, a development firm with offices in Charleston, S.C., and Chicago, Ill., wants to renovate the Days Inn, Waffle House, Lexington Hotel, Comfort Inn, Quality Inn and Conch Tour Train station at U.S. 1 and North Roosevelt Boulevard, colloquially known as the Triangle.

"We're hoping to restore these hotels so it's as close to new product as we can," John Gonzalez, Woode director of reporting, said.

The development plan goes to the city's Planning Board on April 18, then on to the Key West City Commission on May 21. Both meetings start at 6 p.m. in Old City Hall on Greene Street.

"It's a chance to really improve that area," Gonzalez said. "We've kind of pushed this well beyond past due. Assuming we can get through the Planning Board and the final City Commission hearing, we'll start really as quickly as possible."

From there, Gonzalez said the goal is to get the 534 rooms, out of a total in Key West of about 5,500, back in operation early in 2014. The four hotels employee around 155 people.

The basic plan is to keep the hotel structures while gutting the rooms, changing the exteriors and upgrading lobby and other common guest areas.

Gonzalez said the personnel transition is "something we're working through currently. With such a short construction time frame, you're going to be working on the pre-opening pretty quickly."

Jessica Bennett, director of market research for the Monroe County Tourist Development Council, said the biggest impact would be on lodging properties with similar price ranges, in the $100 to $200 nightly range.

"What will likely happen is other budget [hotels] will be able to increase their price through less competition in their tier," she said.

There are six tiers of lodging in Key West: Luxury, upscale, mid-price, economy, budget and small properties.

Data compiled for the TDC by Smith Travel Research indicates an average daily rate in 2012 of $152.34 per night at "budget" properties like the four owned by Woode, and an average occupancy rate of 72.5 percent.

Woode, which has holdings valued at more than $1 billion, purchased the four hotels from the local Spottswood Cos. in 2005 and 2006. The two companies co-own the Beachside Marriot directly across the street from the proposed construction site.

Spottswood had previously sought to redo the hotels with a massive convention center.

Gonzalez said he's working with the city's Art in Public Places Board on a large signature installation at the entrance to the city. City law requires 1 percent of hard construction costs in a redevelopment exceeding $1 million go toward public art, in this case, $300,000.

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