KMG Hotels Announces Commitment to CBV - April 7, 2016

Chesterfield, MO, April 7, 2016 – KMG Hotels and Chesterfield Blue Valley announce that they have reached agreement to construct a 116-room hotel on 2.1 acres.  The facility is anticipated to have multiple on-site amenities including an outdoor swimming pool.  Construction is anticipated to begin in late 2016 with an opening in 2017.The hotel will be located on Blue Valley Avenue between Brasher Street and Premium Way. 

 

            KMG Hotels based in Kansas City, Missouri, operates and manages eight properties under multiple flags including Hampton Inn, Hilton Garden Inn, Holiday Inn, Holiday Inn Express, Candlewood Suites, and Courtyard by Marriott and currently has four additional properties under construction.  KMG Hotels was founded in 2000 and is jointly owned by Mr. Jayesh Koshiya and Mr. Sanjay Koshiya.  KMG Hotels prides itself in providing quality service and a branded experience to its customers.

 

            The hotel will join the 391,000 s.f. St. Louis Premium Outlets, 60,000 s.f. Gander Mountain, and 55,000 s.f. Burlington store.   Construction of the 20,000 s.f. Cavender’s Boot City is nearing completion and will open this summer.  A 7,500 s.f. BP GasMart/Subway restaurant is under construction and will also open this summer.

 

            Chesterfield Blue Valley is a 132-acre planned, mixed use development in St. Louis County, City of Chesterfield, Missouri, fronting on Olive Street Road and I-64/Hwy. 40.  The project is zoned for 1,400,000 square feet of retail, hotel, restaurant, entertainment venues and office space. 

EXECUTIVE SUMMARY

Chesterfield Blue Valley (“CBV”) is a 132-acre planned, mixed use development in St. Louis County, City of Chesterfield, Missouri, fronting on Olive Street Road and I-64/Hwy 40-the spine of the St. Louis SMSA.  Chesterfield Blue Valley is in the path of major growth of the metropolitan area of 2.85 million people.  The site has superior visibility and access from I-64.  The project is zoned for 1,400,000 square feet of commercial and retail development.  Soils study, environmental survey, traffic study, zoning ordinance (zoned Planned Commercial) and all other due diligence are complete and available for review.  The total site is shovel ready pending user plan approval. 

 

All electric, water, sewer and community utilities are available from Olive Street Road, Outlet Boulevard and Premium Way and have been extended to the property lines of all parcels.  Earthwork, fill import and offsite road construction was completed in August, 2013. 

 

The reconstruction and widening in 2013 of Olive Street Road to five lanes and a new intersection at Olive Street Road and Chesterfield Airport Road with dual left turn lanes and free flow right turns provide superb access. 

 

A 50-acre parcel of prime land in the heart of the total project was sold to a joint venture of Premium Outlets|Simon and Woodmont Development (SLPO) on September 12, 2012.  Premium Outlets is the largest retail developer and owner of outlet malls in the country.  Phase I of the 463,623 square foot outlet center with 2,210 contiguous parking spaces opened August 22, 2013. Phase II of 79,000 s.f. is approved.

 

Additionally, Burlington opened a 55,000 s.f. store in September, 2015; and Gander Mountain opened a 60,000 s.f. store in November, 2015.

 

Other retail users have acquired lots and are in various stages of construction:  Cavender’s Boot City will open a 20,000 s.f. store in Summer 2016; and a BP convenience store and Subway will open a combined 7,500 s.f. in Summer 2016.

 

Studies indicate that as many as 5 million people will visit the site each year with over 85% of visitors visiting the site from distances of greater than 15 miles.  Sales are projected to exceed $160,000,000 in calendar 2016.

 

CBV is selling the remaining 55.6 acres (net of road improvements) surrounding the outlet mall.  Customized, prime parcels will be sold to entertainment, service, restaurant, hotel and office users.