Lakeview to proceed with hotel expansion
But airport office building up in the air
By: Murray McNeill | Winnipeg Free Press
The recession and credit crunch aren't preventing Lakeview Management Inc. from proceeding with the expansion of its popular airport hotel.
Work is underway on an addition to the firm's Four Points by Sheraton Winnipeg hotel at Richardson International Airport.
"The piles are all in and we're well on our way," Lakeview president Keith Levit said in an interview Monday.
The only thing that's still up in the air is how big the addition will be. Levit said it could be anywhere from two to seven storeys, depending on how many extra hotel rooms company officials decide to add.
"We're basically saying, 'Should it be eight, 20 or 38 (rooms)?'" he said, adding they expect to decide within the next two months.
Levit said there's clearly a demand for more hotel rooms at the airport because the Four Points had an occupancy rate of 87 per cent as of the end of 2008, "and it hasn't slowed down in the first two months of this year."
He said what's complicating things is that Lakeview still plans to build a $20-million luxury hotel -- the Grand Winnipeg Airport Hotel -- just down the street and across the road from the new airport terminal that's under construction. That facility will have 100 guest rooms. Levit said work is expected to get underway in the spring of 2010, and will take 18 months to complete.
In addition to the two hotel projects, Lakeview also has the option of building a seven-storey office building on the airport campus. It would be situated between the two hotels and would be linked to both by the Four Points addition on one side, and a two-storey addition to the Grand Winnipeg on the other. Levit said it will likely be at least another year before Lakeview officials decide whether to proceed with the 50,000- to 60,000-square-foot office building. "It's going to be based on pre-leasing and we'll be going out (into the market) relatively soon to see what sort of demand there is for that kind of space."
Lakeview has also talked about building two new hotels on a downtown property it owns immediately west of the Winnipeg Convention Centre on St. Mary Avenue.
But Levit said those two projects -- one seven storeys and the other seven-to-16 storeys, are on the back burner until the economy improves.
The Four Points addition will include a new banquet hall, four new meeting rooms and five new hotel rooms on the first two floors. Some meeting rooms in the Four Points will also be converted to three new hotel rooms, giving it at least eight new rooms. Levit said that phase of the expansion project should be complete by the end of September.
murray.mcneill@freepress.mb.ca