DEW Construction will not build a hotel at Leahy Airport. How a 7-year-old contract expired

Economic setbacks have halted the years-long project to build a hotel at Patrick Leahy International Airport in South Burlington.

The idea of ​​building a hotel directly on the airport property has been in the works for seven years. The latest plan calls for a five-story building with about 117 rooms on the site north of the parking garage. The airport – the largest in Vermont – recognized the need for nearby lodging for overnight travelers, especially since many flights arrive and depart early and late in the day.

However, this problem seems to persist for now, as the project failed last June when a contract between the companies involved in the project expired and was not renewed.

What happened to the deal with DEW Construction and Colwen Hotels?

DEW Construction first signed on the project in 2017. The Williston-based company partnered with Colwen Hotels, a hotel group that manages several hotels in New England, in 2023 after two other partnerships failed.

This partnership came about after years of hurdles, including opposition to another proposed location and the COVID-19 pandemic, which slowed air travel and subsequently created the need for a hotel.

Colwen and DEW joined forces under one name, BTV Hotel, and signed a contract – also known as an option agreement – with the airport that set out permitting, branding and financial contingencies that, if met, would trigger a lease. However, certain financial terms of the contract were not met at the time of renewal, the airport said. BTV Hotel decided not to renew the contract when it expired in early June.

How much should the hotel cost?

DEW Construction estimated the cost of the project at $28 million to $29 million. Little information was given to the public other than that the cost of the project was currently too high to continue. One of the financial burdens cited was high interest rates.

Will a hotel ever be built at Leahy Airport?

Leahy Airport says it will hold a public tender for new developers next year in hopes of finding new developers interested in leasing the property to build and operate the hotel.

While details will be reviewed by the end of the year, the airport will not put any money into the project but will simply offer a contracted lease to a developer and management company to build a hotel on the north parking lot, as it has done to date.

Sydney P. Hakes is Burlington’s city reporter. Reach her at [email protected].

This article originally appeared in the Burlington Free Press: The hotel contract with the developers at Leahy International Airport is expiring. What now?