Proposed road closure aims to boost hotel rooms near PTCC

News Release

At its upcoming meeting set for June 1, Penticton City Council will receive a report outlining steps to expand the number of available hotel rooms near the Penticton Trade and Conference Centre (PTCC).  

Central to the report is a recommendation to close a portion of Alberni Street, reducing the road to one northbound travel lane between Vernon Avenue and Westminster Avenue.  The closed road will facilitate a reconfiguration of lots allowing the proposed new hotel being constructed by the Mundi Group to move slightly to the east and closer to the PTCC and will enable a 30 to 45 room expansion of the current Hotel Penticton (formerly the Coast Hotel). 

“Staff believe the proposed road closure and associated land reconfiguration will provide a better design for the future Mundi hotel and strengthen the connection to the PTCC.  Likewise, creating expansion space for the Hotel Penticton will support the goal of constructing additional hotel rooms in this area,” said the City’s Director of Development Services, Blake Laven.

In meetings with the City, both hotel groups have expressed strong interest in this proposal and see the outcome as providing a notable and timely opportunity for their businesses as the hotel, convention and entertainment sectors recover.

“We believe that the proposed road closure and land reconfiguration will allow for the best possible layout and design of the future hotel and attached restaurant space. The proposal helps to provide an appealing entrance from Westminster to the hotel and restaurant, while also giving us enough space to fulfill important needs like parking,” said Mundi Hotel Group President, Ron Mundi.  “Without the proposed changes, the project would have a much less appealing layout attempting to configure to the dimensions of the existing lot.” 

“All of us at Hotel Penticton and Bear’s Den Restaurant are excited for the new North Gateway project and how we can help promote tourism and partnerships with the Penticton Trade and Convention Centre.  We’re aligning the services to our guests to create synergy with all things Penticton,” said Owner/General Manager of the Hotel Penticton and Bear’s Den Restaurant, Billy Coles.

The City is proposing that the closed portion of Alberni Street be added to the land at 903 Vernon Avenue being purchased by the Mundi Hotel Group and, in exchange, that the Mundi Hotel Group take on additional works to facilitate the road closure and give up a small westerly portion of the site.  Likewise, the City is also proposing that, in return for selling the small westerly portion of 903 Vernon Avenue to the Penticton Hotel, that it be compensated by a cash payment of $265,000.  This amount is based on an evaluation of the land value, including a premium to cover legal, survey and other costs.

Hotel Projects:

If supported by Council, the proposed road reconfiguration and land transfers will enable the following two hotel projects to proceed:

Mundi Hotel - Current plans show a 100-110 guestroom hotel, with a fitness centre, pool and hot tub with a 100 seat restaurant with a roof top patio oriented towards Westminster Avenue. All parking is located off of Vernon Avenue with the Main lobby accessed from the parking area. The hotel building is six storeys in height, with a two-storey restaurant in a separate but attached building.  An outdoor courtyard is located between the two buildings that will link in to the Trade and Convention Centre with an at-grade landscaped pathway. Detailed plans will come before Council for their approval this summer. Geotechnical works on site, including the decommissioning of the existing public parking lot and ‘pre-loading’ of the site are anticipated to begin in the coming weeks. 

Hotel Penticton – Proposes a 30-45 room hotel building constructed to the rear of their current hotel and extensive renovations to the existing lounge, conference and fitness areas. The new hotel building is intended to be four storeys in height.

Contacts:

Jim Bauer
General Manager of Finance and Administration
City of Penticton
250-490-2480

Philip Cooper
Communication Manager
City of Penticton
250-490-2583