Back in August of 2019, Vesta Hospitality, the developer working to build the AC Hotel by Marriott at the Terminal 1 property at the Vancouver Waterfront, held a groundbreaking for the ground stabilization of the project. Since then, issues with site stabilization and the current COVID-19 pandemic have delayed the project a bit, and the project timeline has been pushed back by roughly six months.
Once completed, the AC Hotel by Marriott will be located at the corner of Esther Street and Columbia Way. The seven-story building will offer 150 guestrooms, riverfront event space, about 7,000 square feet of meeting space, and some office and retail space. There will also be 160 parking spots included in the development.
Vesta hired a company based in Kansas to do the design work for the hotel – DLR Group. The company has designed more than 20 hotels for AC Marriott worldwide. Robertson & Olson is the contractor for the project, and engineering is being done by Otak.
The project is expected to cost $57 million, and it is being partially financed by investors through the opportunity zone in downtown Vancouver. Opportunity zones were a part of the 2017 Tax Cuts and Jobs Act and allow investors to delay paying capital gains tax taxes on qualified Opportunity Funds.
This week, the VBJ asked Vesta Chairman and CEO Rick Takach about the progress on the AC Hotel by Marriott project, and about any delays to the project caused by the COVID-19 pandemic.
VBJ: Was the AC Hotel by Marriott project one that was affected by the halt in construction back when everything shut down due to the pandemic?
Rick Takach: Not really, but somewhat affected. The hotel was more affected by site stabilization issues than the pandemic. However, once the site was fully stabilized, construction was slightly delayed due to the shut down and the pandemic. The hotel industry was and is being hit hard.
VBJ: By how much was the project timeline affected?
Takach: Roughly, six months.
VBJ: When were you able to resume construction again on the project?
Takach: Well, the project never really started vertical construction until Oct. 1, 2020, (about a month ago). The project did break ground in the summer of 2019. However, this groundbreaking was mainly for site stabilization purposes.
VBJ: Originally when I spoke with you about this project last year, you had said, I believe, that the opening date was scheduled for mid-2021 … how did these delays in construction affect that? Do you still anticipate trying to open at that time?
Takach: The scheduled opening time frame is now late spring of 2022.
VBJ: Do any of these construction delays affect the project financially? Are costs increased at all, etc.?
Takach: The project has had minimal financial impact due to pandemic delays.
