Other hotels with the same idea have met with mixed success
Gilroy – The city’s southern shopping district may soon get its first hotel, as international chain Microtel Inn and Suites moves forward with development plans for Pacheco Pass Shopping Center.
The discount hotel chain catering to business travelers on a tight budget is now in the process of securing land in the shopping center along Route 152 – the same area where a new Wal-Mart Supercenter will open in coming weeks.
“We chose Gilroy because of the retail expansion,” said Manu Naran, vice president for franchise sales and development for Microtel. “This product is set up like Southwest Airlines, Wal-Mart, Ikea. It’s all about cutting costs.”
Microtels typically have 60 to 72 rooms, with nightly rates ranging from $59 for a single to $79 for a suite.
The company’s business strategy also involves building in area’s with easy highway access and proximity to fast food, gas stations, and retail shopping.
Other hotels with the same idea have met with mixed success in recent years.
In spring, the Hilton Garden Inn & Suites, located just off the city’s southern access point to U.S. 101, had to renegotiate an economic agreement with the city after failing to attract enough customers to meet tax revenue goals.
Naran pointed out that Microtel’s location in Morgan Hill, off Condit Road, has met sales targets in its five years of operation.
Pam Gimenez, officer manager at the Gilroy Visitor’s Bureau, could not predict if Microtel would see the same results farther south.
“It is hard to say – the hotels that we have now have been struggling to keep their rooms full, though during the summer time it’s not as hard,” she said. “Hopefully with the new sports park coming in … we can get a lot more sports coming to town. Being a mom, I know you travel with your kids.”
The Gilroy hotel, slated to open in 18 months, will bring 15 new jobs to the area. The company already operates 300 hotels in the U.S. and abroad, including six hotels in California.
Naran said the Gilroy hotel is part of an expansion plan to build 50 new hotels over the next decade.