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RHW Companies to Build $10.5 million Marriott Residence Inn in Colorado Springs, Colo.

By Rich Laden, The Gazette, Colorado Springs, Colo.
Knight Ridder/Tribune Business News 

Jan. 15--A Kansas developer plans a 113-room Marriott Residence Inn for the InterQuest office and business park on Colorado Springs' north side. 

It's the developer's fourth Marriott property in the city, and it opens a new section of InterQuest for commercial development. 

RHW Companies of Overland Park, Kan., plans to begin construction on the $10.5 million hotel in April and open the project about a year later, said Tom Deutsch, a vice president with RHW's development arm. 

The four-story hotel -- an extended-stay variety with kitchens, laundry service and other amenities catering to business people and tourists -- will be built southwest of Republic and Federal drives in InterQuest. 

The office and business park is east of the Air Force Academy and Interstate 25. 

RHW, a licensed Marriott franchisee, has developed a Residence Inn and a Fairfield Inn southwest of Interstate 25 and Circle Drive, near the Colorado Springs World Arena. 

RHW developed the city's lone Courtyard Marriott, off Lake Avenue and about a mile west of the World Arena. 

The Residence Inn also marks the first new commercial development in the 135 acres of InterQuest bought by Nor'wood Development Group and Bethesda Management Co. in July 2000. The two are major players in Colorado Springs real estate and have big plans for the area. 

"It really kicks off our development," said Cris Schoon, who's handling marketing and development of the InterQuest property for a Nor'wood-Bethesda joint venture. 

Nor'wood and Bethesda are talking with two or three national restaurant chains looking to locate near the Residence Inn, Schoon said. He declined to identify them. 

Schoon said there's room for a "couple of million square feet" of development in this portion of InterQuest, and Nor'wood and Bethesda plan office development, restaurants and additional hotels. 

Typically, hotels follow offices. In this case, Deutsch said, RHW thinks there's enough development nearby to go forward now. While he concedes the Springs has plenty of hotel rooms, Deutsch said the Residence Inn brand is strong enough to attract its share of the market. 

"We think the present market is up there and will do nothing but grow in the future." 

The 200-acre InterQuest is one of three northside business and office parks paralleling I-25. It's sandwiched between Northgate and the Briargate Business Campus. 

Portions of InterQuest have been developed. High-tech manufacturer Quantum Corp. and a Ford Credit regional service center are among the area's users. Some of the existing property was developed by The Schuck Corp. of the Springs, which sold the 135 acres to Nor'Wood-Bethesda and still owns 50 acres in the area. 

Only a few parcels remain to be developed in the Briargate Business Campus to the south, where USAA Insurance, the Focus on the Family ministry and T. Rowe Price financial services -- among others -- have located. 

To the north, Northgate, with several parcels still to be developed, is home to software giant Oracle Corp., FedEx Corp.'s software development operation and the Compassion International ministry, among others. 

-----To see more of The Gazette, or to subscribe to the newspaper, go to http://www.gazette.com 

(c) 2002, The Gazette, Colorado Springs, Colo. Distributed by Knight Ridder/Tribune Business News. MAR, ORCL, FDX, 


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