Hotel Study Indicates Chelsea Could Support an Upscale Property

A long-awaited hotel study commissioned by the City has been completed and indicates that the market in Chelsea could support and ‘upper upscale’ property if one were proposed.

City Manager Tom Ambrosino commissioned the study last year when a hotel was proposed on Second Street, and it wasn’t certain if the market in Chelsea could bear more hotel rooms coming online.

The study was done by the Pinnacle Advisory Group, and they indicated that a seventh hotel property in Chelsea could be successful – perhaps one that is nicer than all of the others.

“Considering the City’s current supply of hotels, we believe a new hotel, the City’s seventh, could be developed as a 125 to 150 room, nationally branded hotel,” read the report. “While we would recommend an upscale or upper upscale hotel product…we believe the ultimate product should be determined by the developer.”

By contrast, the Homewood Suites and Residence Inn in Chelsea are considered upscale. The Hilton Boston Logan and Hyatt Boston Harbor – both at the airport – are considered in the upper upscale class.

“I’m not surprised by the findings,” said Ambrosino. “The one thing we wanted to find out is if the city could support another hotel development. The answer is yes, particularly more hotels on the waterfront. That’s something I think we could try to encourage.”

He said he was also encouraged by the suggestion that the market could bear a more luxurious product than the very nice hotels already in Chelsea.

“It’s one notch up from the Homewood Suites, which is a nice hotel, and that’s a move forward for the city,” he said. “Whether we can attract that or not, I don’t know, but that would be our goal – especially something with a nice restaurant included.”

The study also indicates the best areas for another hotel would be on the east side of the Chelsea Creek and at the Mystic Mall.

“We believe the City’s seventh hotel should be developed in conjunction with support amenities in a location proximate to Boston Logan Airport and the new MBTA Silver Line,” read the report.

The study was forwarded to the City Council on Monday for review. No new proposals have been forwarded, thought the Residence Inn on has proposed an expansion at its existing property.

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