Hotel project moves forward near Republic Airport after pandemic pause  

Construction crews have started transforming a former golf driving range in East Farmingdale near Republic Airport into a 65,000 square-foot Hilton Hampton Inn & Suites, according to one of the development firms involved.

Farmingdale Hospitality Partners LLC worked through several hurdles to finalize one of the few hotel projects launched on Long Island during the pandemic, according to Dorothy Roberts, vice president at Oxford Hospitality Advisors, a hospitality consulting and development firm that formed the LLC with another developer, The Levine Organization.

The partners weighed whether to continue with the $20 million plan when COVID-19 hit, Roberts said. Farmingdale Hospitality Partners felt confident enough about the hotel's long-term viability to continue, but Roberts said getting government approvals was challenging, as was finding a lender, given current conditions in the hospitality industry.

"The odds were against us, and most economic advisers were telling us: It's probably not the right time," Roberts said. "But it's done. We closed the deal."

On Long Island, there are four other hotels in earlier planning phases, according to STR, a global hospitality data and analytics company. Two additional projects are further along, including a Marriott Residence Inn in the final planning stage in Jericho and a Hilton Hampton Inn & Suites that's under construction in Huntington, according to STR.

Some of the planned projects have estimated opening dates in 2024 and 2025, and it wouldn't be unusual for some to be abandoned along the way, according to STR Senior Director of Consulting Alison Hoyt.

Nationwide, the number of hotel rooms in the final planning stages and in construction was about 20% lower in November 2021 compared to November 2020, Hoyt said. A similar drop-off occurred after the Great Recession in 2008 and 2009, she noted.

"There isn't as much interest in building new hotels straight out of the ground," Hoyt said. "Until we really start to see a strong rebound in the hotel industry, we can expect slower construction trends."

The East Farmingdale Hampton Inn & Suites will include 101 rooms, an indoor pool, guest laundry facility and meeting room, as well as complimentary breakfast, Roberts said. The site was formerly occupied by the Skydrive Golf Center, which featured a driving range and mini golf.

The Babylon Industrial Development Agency authorized tax benefits for the project that are estimated to be worth a total of $6.59 million over 20 years, IDA documents show. The hotel, planned at 1030 Broadhollow Road, is expected to employ 16 full-time workers and open around June 2023, according to Roberts.

Farmingdale Hospitality Partners qualified for the benefits when Oxford Hospitality was collaborating with a different company, Blumenfeld Development Group. Roberts said the benefits carry over now that The Levine Organization is involved, and described partnership changes as a common part of the development process.

The location of the hotel was always an appeal, Roberts said. The project is a few blocks west of Republic Airport and within walking distance of restaurants, Roberts said. There are also two Marriott hotels in the area.

"We believe in the economy here," said Roberts, vice president of the Long Island Hospitality Association trade group.

Regional hotels have rebounded since the peak of the pandemic in 2020, but are not back to 2019 levels yet, STL data shows. The hotel occupancy rate on Long Island through November of this year was about 88% of where it was at this point in 2019, STR data shows.

The average daily rate is up about 5% over the same period, but that increase has been driven by inflation and rising labor costs, Hoyt said. STL estimates the regional market has made about $628.95 million in revenue through November of this year, which is about 94% of the $670 million in revenue estimated at this point in 2019.

"The Long Island market has seen a pretty quick recovery," Hoyt said. "The hospitality industry is still in challenging times, both with the rise of cases now and certainly entering a traditionally slower holiday period."

By Sarina Trangle

sarina.trangle@newsday.comSarinaTrangle

Sarina Trangle covers affordability and cost of living issues and other business topics. She previously worked as an editor and reporter at amNewYork.