A new hotel may be coming to O’Fallon, adding fuel to the town’s major economic engine

Another hotel may be on the horizon for O’Fallon, after a SpringHill Suites by Marriott International proposal makes its way through city channels.

This would be the city’s 15th hotel and add 103 rooms to the more than 1,250 already available in town. The lodging industry has become a major economic engine for the city.

Destination O’Fallon, an economic development incentive initiated in 2016, has been a game-changer for the city. That fall, the city raised its hotel/motel tax from 5 to 9%, and it’s paid only by those who booked the lodging.

During the past seven years, hotel room usage and revenue has tripled – from $800,000 in hotel tax revenue that year to an estimated $2.85 million in hotel tax revenue projected in this current fiscal year, according to Grant Litteken, assistant city administrator.

That, in turn, has led to more people eating in local restaurants and shopping in area stores.

“We created the Destination O’Fallon program to grow O’Fallon’s economy and it has been very successful. Revenue from food and beverage in O’Fallon has grown 49% since 2016, and sales tax has increased 26% in that same timeframe,” he said.

“While day trips to O’Fallon are an important part of our economy, data shows that if someone stays overnight in O’Fallon, they are likely to spend over three times as much, including the hotel stay, multiple meals, and shopping trips,” he said.

The development and improvements to the Family Sports Park have attracted more sports tourism users.

The 200-acres sports and recreation complex features eight lighted all-weather synthetic turf soccer fields and three premium grass soccer fields, two all-turf baseball/softball fields, and eight turf infield/grass outfield baseball/softball fields. It has a Splash Pad, pavilions, concessions and a 2.1-mile walking trail. It is a regional site for tournaments attracting players from other states, as well as nearby metro-east and St. Louis teams.

“The Family Sports Park not only attracts hundreds of thousands of people to O’Fallon each year, it helps fill O’Fallon’s hotels, restaurants, shops, and many other businesses,” Litteken said.

But that’s not the only benefit.

“The hotel tax revenue has been a catalyst for the growth of O’Fallon’s Downtown District. Hotel tax revenue has paid for the construction of the O’Fallon Station and operation of the Vine Street Market, lighting improvements downtown, and support for the public events like the District Nights outdoor concert series,” Litteken said.

Revenue was affected when the coronavirus pandemic created a public health emergency in 2020 but has since rebounded.

“COVID had a significant impact on tourism related hotel usage in 2020, but frequent hotel usage originating from the hospitals and Scott Air Force Base helped O’Fallon’s hotels remain viable and successful.” Litteken said. “Since COVID restrictions subsided, hotel revenue growth returned to its strong upward trend.”

Hotel customers are often families of patients seeking medical care at St. Elizabeth’s Hospital in O’Fallon and Memorial Hospital in Shiloh, military personnel attending meetings and events at Scott AFB; and people visiting attractions in St. Louis.

SpringHill Suites Proposal

Brad McMillin of Brad McMillin Realty Inc. submitted a planned-use request seeking approval for a 2.84-acre tract located at the northeast corner of North Green Mount Road and West U.S. Highway 50.

The new 103-room, 5-story hotel would be developed on four lots – two properties that have been vacant for over a decade, while another two properties have existing single-family residences. That would require re-zoning to a planned community business district.

Surrounding properties include offices, retail, and services – Eagle condominiums and commercial center to the north; residences and Scott Credit Union to the east; CVS Pharmacy, Sonic Drive-In, Denny’s, and Harley Davidson to the south; and Carrollton Bank, First Bank, and Advance Title Solutions to the west.

SpringHill will offer mostly one-bedroom rooms, with some double rooms available, and have an outdoor swimming pool, meeting spaces, and a limited fitness center.The O’Fallon Planning Commission recommended approval, in an 8-1 vote, at its July 25 meeting, and is expected to be reviewed by the council’s community development committee on Aug. 14.

“The proposed development is high quality and will be harmonious with any surrounding development,” said Community Development Director Justin Randall, noting it is within the comprehensive plan guidelines.

He said the staff recommended it move forward and must adhere to the final traffic impact study and required roadway improvements.

A traffic impact study conducted by CBB Transportation Engineers and Planners suggested improvements to the existing street network, including a westbound right-turn lane at the signalized intersection of Highway 50 at Green Mount Road.

The report stated that would “significantly increases level of service in all westbound drive lanes, therefore reducing queuing and improving level of service in the northbound left turn lane onto Green Mount Road.”

Access points would be both along Green Mount and Highway 50, and CBB recommended that both driveways provide three lanes – one entering with separate left-turn and right-turn exit lanes.

Additionally, the development is reserving an area along the Highway 50 corridor to implement recommendations from the Great Streets Plan that should be approved in June/July 2024, Randall said.

SpringHill Suites Photo Prototype Elevations and Signage Submittal by Jennifer Green on Scribd

O’Fallon Hotels

Hotels listed in the city are: Baymont Inn & Suites, Candlewood Suites, Best Western, Drury Inn & Suites, Extended Stay America, Fairfield Inn, Hampton Inn, Hilton Garden Inn, HomeTowne Studios & Suites, LaQuinta Inn & Suites, Quality Inn, Super 8 by Wydham, Sleep Inn and TownPlace Suites by Marriott.

Currently, the city does not have any other applications for a hotel. However, a hotel was approved as part of the Central Park mixed use development. But there hasn’t been an application for a building permit.

To keep up with what’s building in O’Fallon, visit this map: https://storymaps.arcgis.com/stories/3f141fcb564c4a629b30cf56febfb15a.