A proposal for a five-story hotel adjoining the quiet neighborhood around Velma Road has drawn criticism from the area’s residents, many of whom expressed their concerns at a Chapel Hill Town Council public hearing last month.
The proposed hotel would be located at 1609 E. Franklin St. and would have 110 rooms, according to the concept plan submitted to the Chapel Hill Town Council by HPW Properties, LLC.
The location already has a special use permit from 2009 for a business space and parking spaces. To build a hotel on the property, the company would likely need a special use permit modification and a rezoning.
The Siena Hotel sits at 1505 E. Franklin St., on the same block as the proposed hotel. Anthony Carey, who manages the Siena, said another hotel in such close proximity would be an economic burden rather than a benefit.
“You’d create oversaturation,” he said. “Even during Super Bowl events and (UNC) Parents’ Weekend the current supply of hotel rooms does not sell out. At some point, if you create so much supply, the rates (for hotel rooms) will be decreased.”
Carey said lower hotel room rates would mean less taxable revenue for the town.
Dwight Bassett, economic development officer for the town of Chapel Hill, said though the area around Velma Road may be saturated with hotels, there are other locations in Chapel Hill where new hotel accommodations would be welcome.
“It is a fact that we do lose rooms to Durham,” he said.
Residents who live in the Velma Road neighborhood said the large building would be unsightly and out of place.