MINNEAPOLIS HOTEL PROJECT
The Hewing Hotel will offer an upscale experience, with tailor-made services in memorable surroundings, without the high operating costs associated with the pre-formulated standards of traditional luxury brands. The Hewing Hotel is inspired by the act of hewing a piece of timber into a more refined and usable squared-off shape. Hewing is a process that requires skill, handcraft and hard work. The hotel building features old-growth pine beams and posts harvested from virgin pine forests in Minnesota. The loggers who milled the beams and the individuals who worked in the building were industry pioneers who helped shape the city over 100 years ago. The Hewing Hotel will be dedicated to crafting an unforgettable, high quality experience for guests and visitors. At the same time, The Hewing Hotel will help to redefine and shape the neighborhood for the new pioneers and for the next century.
Inspiration for Hotel Design
The Hewing Hotel, located in the fashionable and rapidly developing North Loop area of Minneapolis, in the historic Jackson Building, will include 125 thoughtfully designed rooms with exclusive access to a year-round rooftop sauna and pool deck, business lounge, screening room, state-of-the-art fitness facility and more. A new atrium will connect arriving visitors on the first floor to the levels and sky above. Each floor will interact with the atrium differently, allowing a guest’s experience to vary as they move through the hotel. On the main level, the hotel will feature a 144-seat ballroom and distinguished event space, one meeting room (31-seat), and two board rooms (16 & 10 seats). A focal point of the hotel will be the destination restaurant and bar with upscale yet approachable cuisine inspired by a wood oven and lively open kitchen environment that will compete with some of the most high-volume and award-winning new restaurants in Minneapolis. The rooftop Social Club at The Hewing will surely be the ultimate year-round venue that celebrates Nordic heritage and provides opportunity for guest and local interaction in an unforgettable way with programming that includes a bar, sauna, outdoor lounge spa, and expansive rooftop terrace providing uninterrupted views of all of Minneapolis. The rooftop will be accessible by all hotel guests, in addition to a limited number of private memberships, available for purchase. The daytime operation of the rooftop will be solely for guests and club members only. At night, the deck will transform into one of Minneapolis’ top destinations, open to the public when The Hewing throws its iconic hotel parties, special events, and a social scene like none other in Minneapolis.
The Hewing Hotel will be located at the entrance to the North Loop Historic Warehouse District and is within walking distance to the Minneapolis Central Business District, allowing easy access for future hotel guests visiting Minneapolis on business. The North Loop is not only one of the fastest developing neighborhoods in America, but also regarded as one of the most influential, and is considered a model for up and coming urban areas across the nation. Over the past ten years, the North Loop has seen more development than any other area in Minneapolis, with a population that has more than tripled in the last 15 years. Currently, more than 10 multi-family and mixed-use projects in the North Loop have been delivered or broke ground and several hundred new luxury apartments are being delivered over the next 24 months. The city’s most acclaimed and busiest restaurants surround the hotel site. The area's first grocery store, a flagship Whole Foods, opened as part of a new multi-family development in mid-2013. The hotel is adjacent to one of the premier department stores in Minneapolis and popular national retailers Shinola and Filson opened stores across the street in 2014.
In early 2014, Goldman Sachs purchased the North Loop's Tractorwork's building, also a historic property and down the street from the project, for $156 psf, a very strong price and comparable to the Nicollet Mall building in the core of downtown. The Hewing Hotel will be the closest full-service hotel to Target Field, home to the Minnesota Twins professional baseball team. Additionally, the Hotel will offer incomparable access to the Light Rail, Mississippi Riverfront Parks, Minneapolis Skyway system, and the Cedar Lake Regional Trail.
The competitive set of hotels is primarily made up of downtown upscale and luxury “boutique” hotels, including the W Hotel, Hotel Ivy (Luxury Collection), The Hotel Minneapolis (Autograph Collection), Kimpton Minneapolis Grand, and Le Meridien Chambers. This set has performed at over 80% occupancy for the last two years. However, none of these hotels are truly differentiators in the market and all lack local relevance. The Hewing Hotel will be well suited to stand apart from the competitive set through a locally inspired and authentic design, world-class service, and an awe-inspiring food and beverage experience. With the same positioning versus their respective competitive sets, Aparium managed hotels were the rate and occupancy leaders in Chicago and Milwaukee. The Iron Horse Hotel has historically and currently performs 165% better than the top competitive set in Milwaukee. This estimate would position The Hewing Hotel relatively in line with the top one and two hotels in the market (W and Hotel Ivy) in terms of RevPar (rate x occupancy), knowing there is significant opportunity to outpace the aforementioned hotels.
ESG Architects, based in Minneapolis, is an award winning design firm leading the architecture and design. ESG has designed hospitality projects nationally with notable Twin Cities projects including the W Hotel, Westin Edina, Westin Minneapolis, Aloft Hotel, Marriott Renaissance at Milwaukee Road Depot, and Radisson Blu at Mall of America. Construction will be led by Frana Companies, recognized as an experienced builder that has completed major historical renovations of several other buildings in the North Loop. With over $1 billion in construction volume across the Upper Midwest, Frana has experienced a pattern of continuing growth that now includes approximately $210 million worth of construction volume per year.
The team also includes the support of highly experienced local partners for design and development. Alex Haecker of AWH Architects is one of the most experienced historic consultants in Minnesota. Serving as local development consultants to the project, Harbor Bay Real Estate Advisors is a leading real estate development, investment, and advisory firm. Co-founders Tom Lund and Mark Bell have over $1.5 billion of development experience in a variety of product types including multifamily, office, industrial and retail.