Market study shows strong demand for an Uptown Marion hotel

MARION — The city of Marion needs a fifth hotel, according to market study results presented to the city council this week.

Deputy City Manager Kim Downs on Tuesday updated the council regarding a two-phase study by Core Distinction Group, LLC of Little Chute, Wis.

"The findings from Phase 1 indicate a strong market demand for an 80-90 unit upper-scale hotel in Uptown Marion, aligning with the City's vision for the revitalization of the area," Downs' report states.

The consultant reached its findings through a market analysis of current hotels and interviews with businesses and residents. Downs said the interviews found there is a need for "restay traffic" rooms in Marion. Those are rooms geared for people who want or need to stay during the week and longer than a day or two.

Downs said the study is now moving to phase 2, which will recommend possible sites for a new hotel in Marion. Those recommendations should be ready in a week or two, she said.

Key considerations in site recommendations will include: economic impact, community benefits, traffic and infrastructure, zoning and land use compatibility, and analyzing potential economic benefits of each location, including job creation, increased tourism revenue, and property value appreciation.

The City Council approved the study agreement with Core Distinction Group, in December. The city is paying an amount not to exceed $17,500 for the study.