Business & Real Estate

Another hotel planned for Sacramento airport falls through

A deal for a planned hotel at Sacramento International Airport has fallen through.
A deal for a planned hotel at Sacramento International Airport has fallen through. Sacramento International Airport rendering

The developer who had planned to build a hotel at Sacramento International Airport has dropped out of the project, saying it is unable to obtain financing, according to a county report.

County airport officials declined comment Friday on next steps, saying they plan to update the county Board of Supervisors next week before divulging whether they will try to move forward with new plans.

Airport officials will formally ask the supervisors Tuesday to terminate the agreement with Sonnenblick Development of Los Angeles.

This marks the second time in the last decade that the county has failed to get an airport hotel project financed and built. Airport officials tore down the original airport hotel in 2007 to make room for the current Terminal B.

Initially, a hotel was to be included as part of the Terminal B complex, but the county had to cancel those plans during terminal construction because the project did not pencil out.

The county then signed a deal in 2015 for a 135-room, $24 million hotel between the two terminal buildings with Sonnenblick Development of Los Angeles. That developer agreed to privately finance and build the hotel and pay the airport rent.

Sonnenblick recently notified county officials that it could not find financial backing for the the project.

County Supervisor Phil Serna said the county continues to want to get a hotel built, calling it an amenity for passengers and for companies that want to conduct on-site business in hotel meeting rooms.

Tony Bizjak: 916-321-1059, @TonyBizjak

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