Schenectady, N.Y. – Schenectady City and County leaders today joined with Metroplex to announce plans by Schahet Hotels, Inc. to build a new $8 million, 93 room, five-story Hampton Inn in downtown Schenectady at the corner of State and Clinton Streets in the City’s fast growing Proctor’s Entertainment District. Schahet Hotels is based in Indianapolis, Indiana. The company owns and operates hotels in Indiana, Massachusetts and New York.
Susan E. Savage, Chair of the Schenectady County Legislature said, “Just two weeks after announcing plans by the Mallozzi Family to invest more than $2 million in downtown, we now have the opportunity to welcome the Schahet Family’s decision to invest over $8 million in Schenectady. Like Mallozzi’s, this is a proven company with a 42 year history of owning and operating hotels. This project represents the first major hotel to be built in Schenectady in over 30 years. It is another sign of the growing confidence that the business community places in our efforts to revitalize Schenectady. This exciting new investment, the latest in a series of job and investment announcements in Schenectady, fills a key corner in downtown and brings to $73 million the total amount of new investment attracted to our community since the County Legislature put in place a new unified, proactive and professional economic development initiative just seven months ago.”
Mayor Brian U. Stratton said, “Working closely with the County Legislature, the City Council and Metroplex, we have brought home another major investment deal to fill a key site in downtown Schenectady. This new hotel downtown will not only be an anchor project in the revival of downtown, but a great asset to our ongoing efforts to make the Proctor’s Entertainment District an exciting destination for the Capital Region. This project brings to 10 the number of new buildings that our economic development effort has added to the tax rolls in the City this year alone. Another six buildings will be expanded further increasing the tax base. The key to the long term financial health of the City is adding jobs and tax base, and we are doing just that in conjunction with the County and Metroplex all working together for the first time to move Schenectady forward.”
State Senator Hugh T. Farley said, “”This is an exciting development for Schenectady — attracting a multi-million dollar private sector investment as well as ongoing tax revenues, constructing an important new building on State Street, and confirming Schenectady as a destination for business and recreational travelers. It is heartening to see top-name national firms investing in our city.”
Assemblyman Paul D. Tonko said, “Today’s announcement is another concrete example of Schenectady’s comprehensive strategy for downtown revitalization. I welcome the management and workforce of Hampton Inn to downtown and applaud the ongoing efforts of Schenectady’s economic development team to make the City an even better place to live, work and visit.”
Greg Schahet, Vice President of Schahet Hotels said, “We are excited about the future of this community and we recognize the new team spirit that has taken hold of Schenectady and is carrying it forward. The momentum is real and we are proud to be part of the enhancement of downtown Schenectady. The Schahet Family has always been dedicated to providing an excellent place to work and a great place to stay. We recognize and value our associates, our guests and our contribution to the revitalization of Schenectady. Today’s announcement marks a major commitment by Schahet Hotels in the future of this community.”
Schahet Hotels operates eight hotels in Indiana, Massachusetts and New York including several Hampton Inns, Courtyard by Marriot, Holiday Inn and Residence Inn by Marriot. The Schahet Hotels operate the Holiday Inn on Nott Terrace. A $1.5 million renovation of the Schenectady Holiday Inn is currently underway
Metroplex has signed a purchase agreement with Schachet Hotels on a one acre site at the corner of Clinton and State Street at a sale price of $100,000.
Robert T. Farley, Minority Leader of the Schenectady County Legislature said, “For over seven years now Schenectady has been seeking to attract a convention center hotel and first run movie theater in our downtown arts and entertainment district. So many people have worked so hard to keep this concept going. Today’s announcement on the development of a new hotel complex appears to offer a major step forward toward the vision for that dream. It has the potential to advance downtown’s opportunity to become the viable entertainment, recreation and business destination we all know it can become. With the right planning and vision we can get there. We are grateful for this investment in our County and in the new jobs and opportunity it can provide.”
Frank Maurizio, President of the City Council said, “New buildings keep going up and so does our tax revenue. That’s the kind of economic and urban development we need for our downtown.”
Ray Gillen, Chairman of Metroplex and Commissioner of Economic Development and Planning in Schenectady County said, “Seven months and $73 million later, Schenectady is seeing the direct benefit of a unified County/City/Metroplex economic development effort. Economic development is a momentum business. Right now, Schenectady has the momentum, the desire and the resources to get the job done. No community wants a new downtown look and feel more than Schenectady. Thanks to the new unified approach to economic development, Schenectady is now leading the way for Upstate cities looking for a brighter future.”
In return for their commitment to invest $8 million in the new hotel, Schahet Hotels is eligible to apply for a $2 million loan from Metroplex and a $750,000 façade grant. The façade funding will replace the normal building finishes used in suburban hotels with a beautiful brick exterior featuring large arched windows and a two story atrium overlooking State Street. The new hotel is expected to generate almost $10 million in local property taxes, sales and occupancy taxes during the next 20 years.
Construction of the hotel will begin in early 2005 after local approvals are complete with a twelve month construction schedule. The new Hampton Inn will feature a complimentary “On the House Hot Breakfast,” upgraded décor, business center, fitness room, meeting space, pool, whirlpool, a number of suites, free high speed internet access in rooms and the lobby.
For more information about Schahet Hotels, visit www.schahethotels.com.
Hampton Inns is one of the largest hotel chains with over 1,200 locations. Hampton Inn is part of the Hilton family of hotels that includes Hilton, Doubletree, Embassy Suites, Homewood Suites, Conrad Hotels and world famous hotels such as the Waldorf Astoria. More information may be obtained at www.hamptoninn.hilton.com.