Sep 23, 2025

City Commission interested in new hotel for downtown Salina

Posted Sep 23, 2025 12:12 AM
Proposed "Springhill Suites" by Marriott hotel by Lighthouse Properties. Screenshot from Salina City Commission meeting packet for Monday, September 22, 2025
Proposed "Springhill Suites" by Marriott hotel by Lighthouse Properties. Screenshot from Salina City Commission meeting packet for Monday, September 22, 2025

By: NICOLAS FIERRO

Salina Post

A proposal to build a new hotel in downtown Salina was brought forth to City Commissioners, which sparked some interest.

According to City Manager Jacob Wood, Lighthouse Properties has been in conversation for the past several weeks about constructing a brand new hotel in 200 block of S. 7th Street (behind the Old Chicago restaurant). Guy Walker, representing Lighthouse Properties proposed the new hotel to Commissioners on Monday.

Proposal of"Springhill Suites" by Marriott (circled in yellow) from the Salina City Commission meeting packet for Monday, September 22
Proposal of"Springhill Suites" by Marriott (circled in yellow) from the Salina City Commission meeting packet for Monday, September 22

According to Walker, the new hotel would be called "Springhill Suites" by Marriott. This proposed hotel would include 80 rooms (could be changed) and a parking garage of about 380 spaces. Comparable to the current "Homewood Suites" (115 E Mulberry St.), is smaller in square feet, room size and meeting space. 

"Our goal would be to build this one (Springhill Suites) for less money than we did for Homewood, and be able to have rates come in the range of $20-$30 per night," said Walker.

Walker stated that placing another hotel in downtown would "increase the potential customer base." Additionally, Walker and his staff planned to place the new hotel in the proposed location to have "easy access to downtown."

"Hopefully the idea would be to spread those guests out amongst the downtown restaurants and stores, to increase the overall economic impact," said Walker.

Moreover, the location being close to the Homewood Suites helps with 'staffing' and increases 'the ability for guests in both hotels to use the meeting space that is currently in the Homewood Suites' according to Walker.

City of Salina's obligations

Given the fact that this proposed hotel would take place at a city owned parking lot, the City of Salina would have obligations. 

According to Wood, City staff would have to figure out 'transfer of property and ownership of the site for the hotel.' Since the hotel's parking garage would be public, city staff would have to 'bond finance of the garage' for approximately $13 million.

Wood presented different funding sources that would be used for the expenses of the parking garage. Those include:

- Portion of TIF (Tax Increment Financing) generated in the Downtown TIF.

*TIF (Tax Increment Financing) is a financing method used to fund development costs by borrowing against the future increase in property taxes, generated by a specific development project.*

- Portion of TIF generated in the new parking garage/hotel TIF.

- There is potential for STAR Bond proceeds to cover a portion of the cost.

- CID (Community Improvement District) on hotel.

*CID (Community Improvement District), is when property owners in a designated area voluntarily tax themselves to fund improvements and services within the district, or area of proposed building.* 

Wood stated the parking garage would generate $0 in property taxes. 

Commissioners are highly interested and plan on moving forward with the proposal of the hotel.