By Moses Leos III
A 71-room, three story hotel located along Physicians Way in Kyle could provide the city additional rooms to meet future demand.
Kyle’s newest hotel, Comfort Suites, received the green light from the Planning and Zoning Commission, which approved the new facility on Nov. 10.
Kyle Area Chamber of Commerce CEO Julie Snyder said the new hotel is an asset as it offers a variety of economic opportunities for the city.
“It’s a plus for Kyle from an economic standpoint, as well as what it will drive to the community,” Snyder said. “It will help businesses and residents.”
The city’s newest hotel facility would mark the third hotel to open along the Interstate 35 corridor in Kyle.
Kyle currently has two facilities that are located on the northern part of the city limits.
Community Development Director Howard Koontz said NEO Hospitality LLC approached the city in July to discuss the possibility of opening a hotel.
The structure will follow similar brick masonry facade development standards within the Kyle Marketplace area Section 2. The development standards call for all buildings to have a minimum of 90 percent masonry walls.
According to Kyle Mayor Todd Webster, the inclusion of the new hotel is part of the city’s “conscious effort” to attract more hotels to the area.
In May, the city commissioned Stone Hospitality Group to assist in attracting hoteliers in the future.
“It’s what we’re trying to do, because it will generate revenue and take the burden off of taxpayers,” Webster said.
Koontz said he was “surprised” at how Kyle hasn’t attained more hotels in the area. He cited the Austin Business Journal, which referenced the growing hotel and motel industry over the last 18 months.
Webster said the draw of more hotels could allow the city to generate new revenue and create more commerce. With that new revenue, Webster said it could help the city build attractions and install additional amenities.
The new hotel will also increase the amount of Hotel Occupancy Tax (HOT) dollars collected by the city.
Persons who stay within Kyle pay a 13 percent HOT on rooms greater than $1 per night. The city collects 7 percent of HOT funds, while the state collects the remaining 6 percent.
HOT funds can be utilized for a purpose that directly enhances and promotes tourism and hotel, lodging industry. Other criteria for HOT fund use includes promotion of the arts, historical restoration programs, establishment or improvement of a convention center or visitor’s information center.
While Snyder believes the city wouldn’t see HOT dollars until 2017, she said the new hotel would “increase the tax base” and help entities such as the chamber with promoting the city.
Koontz said the new hotel will also attract more visitors to the area, which equates to more outside dollars to Kyle.
“They are the ones that boost the local economy the greatest,” Koontz said. “It’s not passing the same dollars back and forth.”
In addition, the new hotel will assist the city with potential future demand. According to Snyder, the city’s two hotels are operating at an 81 percent occupancy rate on a daily basis as of April 2015. It was an 11 percent rise in occupancy rate from the year previous.
According to Koontz, an additional proposed hotel facility, a Hampton Inn to be located on the west side of Kyle Parkway, is slated to go before P&Z on Dec. 22.
Webster said the focus for hotels in Kyle would continue to draw travelers on the IH-35 corridor. For Snyder, future hotels could also help the city attract patrons attending outside events.
“It gives Kyle another promotional twist to bring people to the city, and spend money at local businesses,” she said. “I do think it will be a plus.”
Other new developments in Kyle November 2015
Comfort Suites
5213 Physicians Way
Taco Cabana
20745 IH 35
Phoenix Martial Arts (Remodel)
402 S Old Hwy 81
Dacy Ln Medical Office (Finish out)
1300 Dacy Lane
Hometeam Pest Defense
164 Republic Drive
