FAQ

You have questions, we have answers.

What brand / franchise / flag will the hotel opearte under?


The design, size, amenities and room count are all the defining means of picking and being accepted as a particular hotel brand. Since at this point, we do not have a design that is acceptable by the Design Review Commission, we cannot definitively say what our hotel brand will be. Initially, the hotel was proposed to be a 80-95 Unit Hyatt House hotel. Which is considered to be an upscale extended-stay hotel under the Smith Travel Research hotel segementation list. However, with the many revisions that have been made to the deisgn of the hotel, the hotel now cannot support that brand. Current design of the hotel, will suport an upscale to upper midscale hotel (no longer extended stay). The proposed hotel is designed to be a Hyatt Place hotel. Which is considered to be an upscale hotel under the STR Hotel segemenation list. With our current program, this will be the smallest Hyatt Place in their system, in-terms of rooms and square footage. For a full list of STR hotel brand categories please visit their list here. If the hotel is reduced further in size and amenities, our branding will inadveratbly change. However, it is still our intent to build the highest quality hotel that the site will allow.




Is there a need for more hotels in Novato?


A hotel market is considered healthy and in need of new supply when the hotels are operating at a 70+% occupancy rate for multiple years. Novato and nearby hotel markets are currently performing beyond a 70% occupancy rate for the past couple of years. At this level of existing hotel performance, new supply can be easily absorbed into the market without any detrimental effects to existing supply. Additionally, a key indicator and easily viewable one, of the hotel market in Novato, is the transient occupancy taxes (TOT) collected in the City. For the past 7 Years the TOT in the city has been growing to new high's that have never been reached before. The past 2 years this growth has been slowed because the hotels are operating at their peak levels. This is a clear indicator that the City is in need of more supply. Please see: http://novato.org/home/showdocumentid=14503 page 48 for a graph of TOT collected in the city for the past 10 years. There is are several reasons for pent-up induced demand for a new hotel to be built in Novato.

  • Lack of segmentation - Hotels are separated into several categories. Novato is lacking several segments in the hotel market. There are a handful of limited service economic hotels and can use a upper midscale hotel.
  • Lack of New supply - New supply has not been added in the market for 15+ years. Many hotel travelers seek newer hotels when traveling and will travel to find this.
  • Lack of brand representation - Novato is only represented by 2 major hotel chains (Marriott and Best Western). Most frequent hotel guests are extremely brand loyal. Meaning, they won't stay in Novato even though they have business in Novato for the simple fact that they're Hilton loyal members and Novato does not offer a Hilton product.
In addition to induced demand, the location of our hotel is in close proximity and central to several hotel demand generators:
  • San Francisco Tourist Sites
  • Napa & Sonoma Wine Country
  • Infineon Raceway
  • Point Reyes National Seashore
  • US 101 travelers
  • Graton Casino
  • Several local businesses




Who will operate the hotel?


At this point, the hotel will be opeated by Hyatt or a Hyatt approved third party management company.




Is there enough parking?


The city ordiance requires 1 space per 1 room for hotels, the Novato Hotel Project meets that requirement. Hyatt and many other brands require the same ratio. In GSP's history with opearting and developing hotels, a 1 to 1 ratio of rooms to parking spaces will be more than enough parking for the hotel guests and employees.





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The Novato Hotel Project