WILMINGTON — The Crowne Plaza hotel at ILM International Airport is scheduled to break ground by the end of this year, according to airport director Jeffrey Bourk.
READ MORE: ILM hotel developers face financial difficulties, project delayed up to 18 months
Bourk told New Hanover County commissioners the schedule, which was delayed for up to 18 months in December 2023, at their agenda review meeting Thursday afternoon.
The director appeared before the commissioners to explain a resolution in support of ILM Airport Hotel Partners, which has a sublease for 4.69 acres of airport property. The company is seeking the board’s approval to issue bonds to finance the project; it is seeking bond financing from the Public Finance Authority in Wisconsin. The resolution is required to comply with Wisconsin statute.
New Hanover County will not be financially obligated in any way nor conveys any zoning or permitting concessions to ILM Airport Hotel Partners.
The board will vote on the resolution at its Monday meeting.
In April 2022, the ILM Airport Hotel Partners, a New York-based company owned by Andrew and Chip Weiss, announced a plan to construct a luxury hotel on ILM’s campus — a vision long in the making for the airport authority.
The plan is to fund the $50-plus million project 75% through bonds and 25% through cash equity investment. However, financial troubles, mainly struggles with high interest rates, slowed down the hotel’s progress, thus threatening their vision.
The Weisses were given an 11-month extension in December 2023 but were instructed to have proof of financial closing documents by Oct. 6, 2024 or else their lease of the airport’s property would be terminated.
Last December’s national forecasts predicted rates between 4% and 5% a year later. The Federal Reserve kept the federal funds rate target range at 5.25% to 5.5% at its July meeting. Financial markets are predicting the rates will be cut to between 4.50% and 4.75% by the end of this year; the Fed’s goal is to reach 2%.
The Weisses are working with IHG Hotels and Resorts to bring a 92,850-square-foot Crowne Plaza to the airport commerce district. 150 rooms are planned, with 50 dedicated to extended stay units, separate living and bedroom spaces.
The hotel layout calls for roughly 5,000 square feet of event space, co-working zones, a rooftop bar and a ground floor restaurant.
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