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The Indianapolis Airport Authority on Friday took its final step toward a franchise agreement that would flag a future terminal-connected hotel as a Westin property.
The board authorized Indianapolis International Airport Executive Director Mario Rodriguez to finalize and sign an agreement with Marriott International Inc., which owns the Westin brand.
IBJ first reported on the airport’s plans earlier this week, which tentatively calls for a four-star, 262-room property on the west side of the existing parking garage across from the terminal building.
The 9-0 vote Friday, which included an abstention from board member Toby McClamroch, followed a brief discussion about whether the agreement itself was being authorized by the vote or if it allowed for further conversations between airport leadership and Marriott. Rodriguez confirmed it was the latter.
Airport officials are expected to meet with Marriott representatives Friday afternoon to iron out remaining details for the project, but Rodriguez said he would make the final draft available to board members before he signed the document.
As part of its agreement with Marriott, the airport would have the right to terminate the deal if it can’t obtain adequate financing to construct the hotel.
The airport said this week it is still trying to understand the costs for the project, including its maximum price, before deciding whether it will move ahead with construction. It would likely use general airport revenue bonds for the project, rather than hotel revenue-secured bonds like the city is expected to pursue for the Signia project downtown.
“Debt for the hotel will not be authorized until the board approves the hotel project,” airport officials said in a statement. “We continue to move towards determining the financial feasibility of [a terminal-connected hotel] at Indianapolis International Airport.”
Indianapolis Airport Authority staff considered both Marriott and Hilton for the hotel flag, but ultimately selected the Westin brand. It’s considered one of Marriott’s mid- to upper-scale brands. The only current Westin hotel in Indianapolis is located downtown.
Airport officials have flirted with the idea of building a hotel next to the terminal since planning for the current midfield complex began in the early 2000s. IAA revived considerations for such a project in late 2022, and the agreement with Marriott is the latest in current efforts to determine its feasibility.
Before Friday, the authority had spent a total of nearly $3.4 million on a series of contracts dating to November for the proposed development, starting with a feasibility study from CSO Inc. ($354,000) followed by another deal with CSO for architectural services ($2.56 million), an agreement with the Louderback Group for hotel consulting services ($254,300), and a construction management and pre-construction services contract with Shiel Sexton Co. Inc. ($225,000).
The airport board on Friday also approved a technical services contract with Wischermann Partners, in the amount of $168,000, related to the hotel project. Minneapolis-based Wischermann was recommended by an internal committee to manage the hotel when it opens, but that contract—which would have a separate cost—is still being negotiated.
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Only 15 years late on the Hotels attached to the Airport….
Plan big and have a plan, otherwise it might have never happened.