In North Carson, plumbing and utilities are underway for a new four-story, 91-room hotel, and local stakeholders see a bright future for lodging in the state capital.
“We are excited to have Home2 Suites coming to Carson City. It’s a welcome addition to our capital city,” said Visit Carson City Executive Director David Peterson.
Reno-based Metcalf broke ground on the 57,000-square-foot building in mid-June. The project, located on the northeast side of the intersection of Silver Oak Drive and North Carson Street, is expected to be completed by fall 2025.
Peterson said Carson has seen an increase in domestic and international tourism, but “limited hotel room capacity limits our ability to host large group tours, tournaments and other special events.”
“We are seeing larger groups moving to the Reno/Sparks and Lake Tahoe areas due to a lack of room availability in Carson City,” Peterson said, “and we are seeing more businesses interested in relocating to Carson City and more businesses needing to house their employees in temporary accommodations until they can decide on permanent housing.”
“Capacity limits also put a strain on lodging facilities during the summer months, when special events, visits and activity of all kinds peak. The new lodging facilities will help alleviate this issue. Nevada’s biennial legislative session means lodging facilities also become fully booked during that time, putting additional strain on facilities to provide rooms for leisure and group travelers.”
The Carson City Convention and Visitors Bureau sees the state capital as the epicenter of the experience for visitors to the area, Peterson said.
“With its proximity to Reno, Lake Tahoe, Virginia City and Carson Valley, Carson City benefits as an overflow destination when major events are held in Reno/Sparks or the Lake Tahoe Basin,” he said. “Increasing Carson City’s lodging options will help us become more competitive in attracting new special events, sporting tournaments and large groups to Nevada’s capital city.”
Metcalf President and CEO Bryce Kratz toured the new hotel site on July 24. The company previously estimated the project’s value at more than $19 million.
“Not only do they offer an alternative to the resorts in Tahoe, but they also have a lot of softball, soccer and baseball tournaments, so I think it draws a lot of people to the area,” Kratz said. “There’s a demand during the legislative session, so I don’t think it’s just about Reno or Tahoe. Carson City is growing and there are other opportunities and needs for hospitality.”
Home2 Suites will be the eighth hotel Metcalf has built for Carson City Hotels LLC, whose managing member is Jaswinder Dhami, according to documents from the Secretary of State’s office. Other properties Metcalf has built for the Dhami family include Holiday Inn Express hotels in Reno, Minden and Winnemucca, and a Courtyard Marriott in Carson City.
“We’ve been building for the Dhami family for almost 20 years,” Kratz said.
During a December hearing before the Carson City Planning Commission on a special use permit for the new hotel, Dhami described the project as a luxury extended-stay hotel. Dhami said at the time that there was a growing demand for such hotels.
“They’re basically suites, so not only are they a room and a bathroom, they have a little kitchenette,” Kratz said.
Faced with uncertain economic conditions for development, hotel companies recognize the need to work with developers, Kratz said.
“They recognise that we are in a tough economic time and are willing to be flexible and work with developers and contractors to make concessions without impacting too much on the aesthetic design and core elements of the brand,” he said.
Peterson provided The Appeal with data showing that taxable room revenues and occupancy rates for hotels and motels in Carson City are on the rise. Taxable room revenues were approximately $20.6 million in fiscal year 2018. By the end of fiscal year 2020, when the COVID-19 pandemic hit, it had fallen to $16.9 million. But by fiscal year 2023, taxable room revenues have not only recovered, but increased to $28.5 million. And taxable room rates for the same period have risen from 57 percent to 64 percent.
According to data provided by Peterson, there are currently 1,345 hotel/motel rooms available in the city.
“The future looks bright,” he said, “with planned renovations of existing lodging facilities and ongoing infrastructure development by the existing ownership group in the Carson City market. Additionally, expansion plans for existing facilities are expected to be implemented soon. It would not be surprising to see even more lodging construction in the coming years.”
Construction on Home2Suites is expected to begin vertically by mid-September. Kratz commented on the construction site itself, pointing out the workers in the dirt installing underground piping and all the people who make the project a success.
“These are the last of the pioneers here,” he said. “We’re still here with our tape measures and our boots and our jeans, building the future.”
