Developer: Hoboken Hotel Could Generate $21.4M A Year For City

HOBOKEN, NJ — What economic benefits would a hotel on Hoboken’s waterfront bring to the local community? The developers of a proposed Hoboken Hilton Hotel think that they have the answer to that question.

Earlier this month, developer KMS Development Partners (KMS) announced that it had partnered with Philadelphia-based economic consulting firm Econsult Solutions to estimate the financial benefit of a proposed hotel at the south end of Sinatra Drive near Pier A Park.

According to KMS, the study cited the following possible benefits:

• “The new Hoboken Hotel would generate $21.4 million annually in the City of Hoboken in the form of total expenditures generated by guests spending outside of hotel and ongoing hotel operations”
• “The new Hoboken Hotel would support 120 Hoboken jobs through guest spending and by ongoing hotel operations”
• “The new Hoboken Hotel would generate $1,773,091 in real estate, hotel and school taxes annually to the City of Hoboken and the Hoboken School district”
• “The new Hoboken Hotel would generate $703,993 in new taxes to Hudson County”
• “The new Hoboken Hotel would generate $3,034,566 in new taxes to the State of New Jersey”

The 20-story, full-service hotel would include 283 guest rooms, an onsite restaurant and bar, a 6,000 square-foot rooftop event space, off-site valet guest parking and a fitness center.

• See related article: Hilton Hotel Proposed For Hoboken Waterfront

COMMUNTY CONCERNS

On a website touting the proposed hotel, developers address some of the potential concerns that community members might have about the project.

“The Post Office will remain open,” the website states. “An important part of this project is that it allows the Postal Service to fund greatly needed improvements to their facility. Proposed renovations include the replacement of mechanical, electrical and plumbing systems, the addition of another service elevator, creation of additional work space, underground postal vehicle parking and a new, seven-bay interior loading dock off 1st Street. The changes will allow the facility to more efficiently serve the community and accommodate continued volume growth. The River Street and Newark Street facades and the interior public spaces remain as-is.”

In addition, developers also addressed concerns about potential parking issues that might be created by the proposed hotel.

“We’ve worked hard with a prominent local waterfront advocacy group and project stakeholders to put together a plan which we believe actually improves parking, traffic flow, and pedestrian movements around the site. Currently there is no sidewalk on the Post Office side of Newark St., no sidewalk on the Post Office side of Sinatra Drive and the corner of Sinatra Dr. and Newark St. is very awkward with a two-way Newark meeting a very narrow, one-way Sinatra. And this is also where the main entrance is to the Post Office parking lot and loading dock. Our plan adds sidewalks, reconfigures Sinatra Dr., adds eight on-street parking spaces, improves traffic flow and redirects Postal vehicle traffic away from Newark St and Sinatra Drive. In addition – the site is ideally located close by to myriad public transportation options at the Hoboken Terminal. We expect many guests and visitors to use public transportation.”

Read more frequently asked questions about the project here.

Artist’s rendering used with permission, hobokenwaterfronthotel.com

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