Hendricks Commercial Properties, which purchased the historic Owyhee and several surrounding surface parking lots from LocalConstruct earlier this year.
Now, the company is at work on plans to redevelop the empty lots.
“We hope to build a boutique hotel next to The Owyhee,” Rob Gerbitz, CEO of Hendricks told BoiseDev.
The company initially considered building a hotel in Bodo, which it also purchased, but the cost ended up not making sense.
The company operates five different hotels with a variety of concepts – primarily in the midwest.
“We have two in Beloit, Wisc., two more in Indianapolis and one in Delafield, and then we’ll have one here,” he said. “They are all different. We don’t replicate a building.”
Gerbitz said history and study of the area become the guide for a project.
“What we would generally do is dig into history. It takes you down a rabbit hole.”
Gerbitz said the company does not have a set timeline for when the hotel could start construction.
Pat Rice with the Greater Boise said even with all the new hotels, the market is absorbing the capacity.
Hotel in a key part of downtown
“Demand still outpaces supply, so your annualized occupancy is up year over year,” he said. Rice pointed to the new Home2 Suites by Hilton under construction downtown as the next project to open. “You add another 130 rooms – it’ll be interesting to see if that level of demand continues to exist.”
The Hendricks property would bring a third boutique property the market – including Inn at 500 Capitol and Hotel 43.
The Capital City Development Corporation will soon launch an $11-million set of projects that will makeover Grove St. behind the Owyhee. Hendricks also owns an empty parking lot on the southwest corner of 12th and Grove. It is the home to the Treefort Music Festival main stage each spring.
The Owyhee spent most of its life as a hotel, before LocalConstruct converted it in 2014 into other uses, including apartments and office space.