New Resort Hotel Set to Replace Best Western on Pensacola Beach
Developers are gearing up for a significant transformation on Pensacola Beach as plans move forward for a high-scale resort hotel that will replace the existing Best Western. With a groundbreaking anticipated this summer, the project is poised to revitalize the area, although a contentious $320,000 fee owed to the Santa Rosa Island Authority (SRIA) remains unresolved.
Project Overview
The new hotel, which will feature 209 rooms, is being developed by Pensacola Beachside Resort LLC, a partnership between Innisfree Hotels and Dallas-based RREAF Holdings. The current Best Western, a 120-room establishment, is set to be demolished imminently, according to Rich Chism, Vice President of Development and Asset Management at Innisfree. If construction begins as planned this summer, the new resort could open its doors by spring 2023.
The existing hotel has been closed since it suffered significant damage during Hurricane Sally in September 2020. The new development aims to not only replace the damaged structure but also enhance the overall guest experience on Pensacola Beach.
Conceptual Designs and Amenities
Innisfree’s development team recently presented conceptual designs to the SRIA, showcasing an array of upscale amenities that promise to attract visitors. Renderings included a luxurious outdoor area featuring a lazy river, a pool deck, a dining terrace, hot tubs, a fire pit, a splash pad, and a tiki-style event hut.
Notably, the popular Fish Heads pool bar, which survived the hurricane, will remain operational and will be connected to the new hotel’s second-floor lobby via a bridge. This integration aims to create a seamless experience for guests and enhance the social atmosphere of the resort.
The Fee Controversy
While the development is moving forward, the issue of a $320,000 consideration fee has sparked debate among SRIA members. This fee, which is similar to impact fees but designated for the SRIA’s capital improvement fund, was previously paid by the former owners of the Best Western in 2007. However, that fee expired in 2011, leading the current owners to believe they would not be liable for a new fee upon redevelopment.
During a recent committee meeting, some members expressed a desire to impose the fee, arguing that the previous agreement had lapsed. This decision has been met with resistance from the development team, who argue that the fee represents an unnecessary financial burden, especially in the wake of the hurricane’s devastation.
Voices of Concern
Karen Sindel, a committee member, raised concerns about the appropriateness of imposing the fee in the current economic climate. She suggested that further discussion was needed to reassess the committee’s stance. Julian MacQueen, founder and CEO of Innisfree Hotels, expressed his dismay at the potential fee, describing it as a "money grab" and highlighting the company’s previous support for the community during the island authority’s shutdown.
MacQueen emphasized that Innisfree has been a good neighbor, providing housing and support to local authorities during challenging times. He argued that imposing the fee would hinder the company’s recovery efforts following the hurricane and bridge outages.
Moving Forward
In light of the ongoing discussions, the SRIA board decided to postpone a final decision on the fee, allowing the developers to continue with their project. The board plans to revisit the matter at the next committee meeting on May 26, where they will consider an amendment to the policy for clarity and discuss how to handle the future hotel project.
As the Pensacola Beach community anticipates the arrival of a new resort hotel, the outcome of the fee debate will play a crucial role in shaping the development’s future. The project promises to bring new life to the area, offering enhanced amenities and experiences for both visitors and residents alike.