A Hilton Home2 Suites is seen under construction on 116th Street Northeast in Marysville on Wednesday. (Ian Terry / The Herald)

A Hilton Home2 Suites is seen under construction on 116th Street Northeast in Marysville on Wednesday. (Ian Terry / The Herald)

Three new hotels are rising in Marysville

The new businesses are expected to bring in money for local activities and festivals.

MARYSVILLE — Three projects are in the works that would triple the number of hotel rooms in the city.

Those behind the plans say they chose Marysville for its fast-paced growth and proximity to I-5 and to the Tulalip Resort Casino and Seattle Premium Outlets.

Hilton Home2 Suites is under construction on 116th Street NE, just off I-5 and across 116th from the WinCo grocery store. It is expected to open this spring.

The other two hotels are La Quinta, also on 116th Street NE, and Hotel America, on 88th Street NE. The city has issued a building permit for La Quinta and approved the site plan for Hotel America, city spokeswoman Connie Mennie said.

There currently are 147 rooms at three hotels in the city. These projects are set to add 296 more. The Hilton plans include 90 rooms, La Quinta 114 and Hotel America 92, according to the city.

The room totals don’t include the Tulalip Resort Casino or other properties near Marysville but outside of city limits.

The new hotels are expected to bring in more money for local festivals and activities. Marysville has a lodging tax of 2 percent per stay. Based on a national average for occupancy and $77 a night per room (room costs will vary), the hotels could generate $112,000 per year for the city, Mennie said in an email. That goes toward grants for events and programs to draw overnight visitors.

The grant awards are decided in a competitive process by the Lodging Tax Advisory Committee. Recent recipients include: Maryfest for the Strawberry Festival; the Greater Marysville Tulalip Chamber for the Marysville Brew and Cider Fest; and the Marysville Dog Owners Group for Poochapalooza. About $111,000 in grants were awarded for 2018 events, according to a city news release.

Work started on the Hilton Home2 Suites in early 2017. It’s built for extended stays, a newer concept for the Hilton line, said Richard Heide, the owner’s representative for the project. The building is five stories tall and each room will have a sink, dishwasher and microwave. The $11 million hotel is about 70 percent done, with workers doing drywall this week, he said.

“There’s some rezoning that’s been done recently by Marysville for aerospace,” Heide said. “We’re hoping to gain corporate clients. That’ll be a decent portion of the business.”

Marysville’s 116th Street NE is rapidly being developed, with new fast food restaurants as well as two of the three hotels.

“It’s just growing,” he said. “It’s around the I-5 corridor … You’ve got the outlets and the casino very close by, right across the freeway.”

Developer Satpal Sohal describes the planned La Quinta as a modern, five-story building with a breakfast room, meeting space, gym, indoor swimming pool and a few deluxe suites. He aims to have construction under way within the next few months and the hotel open in 2019.

“There’s definitely a demand for it, a need for more hotels in that market,” Sohal said.

There have been times when increasing construction costs left him wondering if he should wait to build “until the market is less crazy,” Sohal said. The original budget was $15 million, and that has inflated to $18 million, he said. Still, he sees a niche for La Quinta in Marysville.

“For people who don’t want to stay in downtown Everett and want to be out of the city, (Marysville) is a great bedroom community,” he said. “That whole pocket is doing well.”

The three hotels in the city aren’t the only new lodging options going up around Marysville. In December, the Tulalip Tribes broke ground on a new casino and hotel off of Marine Drive that will replace the existing Quil Ceda Creek Casino. That’s expected to add another 150 hotel rooms in the area.

Kari Bray: 425-339-3439; kbray@heraldnet.com.

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