June 19–A new $85 million Embassy Suites hotel, described as a "transformative" project, will anchor Alabama's most visible and recently renovated public beachfront.
The city of Gulf Shores, on Tuesday, announced it has reached an agreement in principle with DD Partners LLC, a development team led by Birmingham-based developer Ron Durham and Marietta, Georgia-based developer Ron Day.
The group will lead the construction of a 229-room, mixed-use hotel development on a 1.93-acre parcel at the corner of West Beach Boulevard and West 1st Street.
"This is the type of transportation project we envisioned for the beach area when we adopted Vision 2025 and committed to make a 'make it happen' mentality," said Gulf Shores Mayor Robert Craft in a statement, referring to a plan the city adopted in 2014.
The 398,000-square-foot project will be anchored by the Embassy Suites and will include a fine dining restaurant, street front retail, and a 23,000-square-foot outdoor rooftop featuring a pool, bar, lounge and event terrace overlooking the recently renovated Gulf Place beachfront.
Additional hotel amenities will include nearly 12,000 square feet of conference space including a 7,800-square-foot ballroom, full-service spa, indoor pool and fitness center.
The new development comes on the heels of the city completing the first two of three phases of a $15 million revitalization of its half-mile public beach.
According to the city, the beachfront investment was "pivotal" in gaining franchise approval from Hilton Worldwide, which owns the Embassy Suites chain.
In April, the city unveiled the most visible aspect of the project, just west of the iconic Hangout restaurant at Alabama 59 and Beach Boulevard. That portion included a new beachfront park, a 20-foot-wide boardwalk, shade structures, playground, and new landscaping features including palm trees.
The project's final phase, which begins this fall, will open in about a year. It will include the further extension of the beachfront boardwalk past the Phoenix All Suites condominiums. A new parking lot and police station will be added.
"We set out to create a pedestrian- and bike-friendly beachfront," said Craft. "We wanted to attract new development that would boost our shoulder seasons and stimulate businesses."
He added, "This (Embassy Suites) project will be the catalyst to drive these initiatives to a new level and a model for future development by obtaining LLE certification and utilizing flood proofing construction techniques."
Said Durham: "This project has been a true public-private partnership from the start. We would not be announcing this project without the city's vision and commitment to Gulf Place and beyond. Their investment will yield returns and spur additional private investment for decades to come."
Gulf Shores will join Birmingham, Huntsville, Montgomery and Tuscaloosa as the only cities in Alabama to boast an Embassy Suites hotel.
Grant Brown, a city of Gulf Shores spokesman, said negotiations with Hilton Worldwide have been going for over two years. The city submitted a request for proposals to hotel developers for a project located near its beachfront.
Blake Phelps, the economic development coordinator with Gulf Shores, said the city has agreed in principle to "utilize economic development tools available to us to facilities this project without the city" assuming any debt or additional risk.
He said the specifics of the development agreement will be presented to the Gulf Shores City Council at an upcoming meeting.
The development team expects to complete all necessary permitting by the end of 2018 and begin construction in early 2019. Construction is expected to take place for 22 months, Brown said, with an opening targeted for the beginning of the summer of 2021.
"This new Embassy Suites will add greatly to the current inventory of hotels and other lodging options that span our coastline," said Herb Malone, CEO of Gulf Shores & Orange Beach Tourism. "This is the perfect project for this location and we anxiously await the grand opening."
This story was corrected at 1:37 p.m. on Tuesday, June 19, 2018, to state that the city of Gulf Shores will consider a development agreement that could include some economic development incentives.
