The completion of a hotel feasibility study commissioned by the City suggests that Chelsea’s market could accommodate an ‘upper upscale’ hotel property.
When a Second Street hotel proposal emerged, City Manager Tom Ambrosino recognized the need for market analysis and ordered the study last year to determine whether additional hotel rooms would be viable in Chelsea.
Pinnacle Advisory Group conducted the analysis and concluded that a seventh hotel in Chelsea could prove viable—potentially one surpassing the quality of existing properties.
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“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,” “While we would recommend an upscale or upper upscale hotel product…we believe the ultimate product should be determined by the developer.”
Chelsea’s current upscale options include the Homewood Suites and Residence Inn, while the Hilton Boston Logan and Hyatt Boston Harbor at the airport occupy the upper upscale tier.
“I’m not surprised by the findings,” Ambrosino remarked. “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.”
Ambrosino expressed particular enthusiasm about the study’s finding that the market could sustain a more premium lodging option than those presently available 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 noted. “Whether we can attract that or not, I don’t know, but that would be our goal – especially something with a nice restaurant included.”
According to the analysis, the east side of Chelsea Creek and the Mystic Mall area represent the most promising locations for future hotel development.
“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,”
The City Council received the study on Monday for consideration. While no new proposals have materialized, the Residence Inn has indicated interest in expanding its current location.