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Everything old is new again

 

Bloomington has become a hot area for luxury hotel development. The 21-year old Mall of America is again driving much of the growth, with the latest announcement of a new 180-room hotel that will be attached to new retail space that would also target the luxury market.

The Mall is close to seeing the completion of a 342-room hotel and is expected to open within the next month. The city currently has 970 hotel rooms under construction for the year. This recent growth, when completed, will leave Bloomington with the largest number of hotel rooms in Minnesota, exceeding the totals of Minneapolis and St. Paul combined.

 

With this amount of commercial real estate development in process, there is always a danger that the hotel market could become overbuilt, but developers remain optimistic this won't happen with much of the hotel construction tied to other retail development that provides support for the other growth.

Some of the construction is making up for rooms lost when the fourth runway was added to the airport. Bloomington also benefits from its proximity to the airport and the traffic it delivers.

Strong development climates like this can lead to potential over-exuberance, so anyone entering this market should be prepared to engage in detailed due diligence and rely on qualified legal assistance to ensure that all regulatory, zoning and financial pieces are in place.

You also want to be certain there are sufficient safeguards in place to protect your interests should other parties develop issues during the process.

Source: finance-commerce.com, "Mall of America expansion calls for luxury hotel amid Bloomington boom," Karlee Weinmann, October 2, 2015

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