UI wants to turn Iowa House Hotel into dorm rooms

The Iowa House Hotel could become a dorm.

The University of Iowa proposes that the hotel on the second, third and fourth floors of the Iowa Memorial Union close in the fall or winter and be converted to dorm rooms for about 200 students. UI officials will seek state Board of Regents approval Thursday.

The project, estimated to cost $9.25 million, will be paid for using Department of Residence money and bonds.

The UI's residence halls - 10 buildings that house about 5,600 students - have been at capacity for years, officials said. Enrollment is increasing, and officials want to increase enrollment more, as well as retention, in the coming years. That means more residence capacity is needed.

Converting the hotel into dorm rooms is a timely and cost-effective way to meet some of that demand, officials said.

“The issue really is the need for student housing and the anticipated enrollment,” said David Grady, associate vice president and dean of students.

The hotel has 96 guest rooms. For the past 12 months, it has averaged 57.5 percent occupancy, said Grady, who oversees the Iowa Memorial Union. That compares with an average hotel occupancy rate of 49.4 percent statewide and 52.9 percent in the Corridor, he said.

The hotel is self-supporting, with annual gross revenues of $1.2 million to $1.4 million, Grady said.

If the regents approve the plan, the goal is to have the rooms converted for fall 2011. The Iowa House Hotel will remain open through most, if not all, of the upcoming Hawkeye football season, Grady said.

It's anticipated the loss of the hotel won't negatively impact bookings at the Iowa Memorial Union for events, such as wedding receptions and conferences, Grady said.

“We've got top-quality catering services. We've got large spaces,” he said. “I think people will still come here.”

UI leaders considered building a 500-bed west campus residence hall in recent years, but that was not pursued because the cost per bed and timeline were too much.