New hotel finally breaks ground off Routes 1/9

A new hotel just off Routes 1&9 finally broke ground last month.

A four-story, 93-unit Candlewood Suites gained approval from the Planning Board in March 2009, which was later changed to become a Home2 Suites by Hilton extended stay hotel. Originally, the plan was to construct a Sleep Inn just off Routes 1&9 at the corner of East Milton Avenue and Lennington Street.

The vacant 4.4-acre site was acquired in June 2008 for $2.35 million and currently pays about $6,000 in property taxes as two parcels (Block 338, Lots 3.01 and 3.02).

The city continues to see increased revenues from the local hotel tax enacted almost a decade ago. About $55,000 was realized in the transitional year 2011 budget, covering July to October 2011. Pro-rated, that would be about $110,000, compared to $103,000 in Fiscal Year 2011, $99,000 in 2010, $58,000 in 2009 and $36,000 in 2008, according to municipal budget documents.

The state imposes a 5-percent hotel tax and municipalities are allowed to impose an additional levy of their own of as much as 3 percent. The hotel tax was created during the McGreevey administration in 2003 and Rahway enacted the local tax effective Nov. 1, 2003.

14 thoughts on “New hotel finally breaks ground off Routes 1/9”

  1. Whew, 'cause I was running out of motel choices on 1&9. I can't see how so many survive. Even if some of them are doing cash business, I can't see all of them making money.

  2. From what I understand, there's market demand from the airport, particularly airline employees. That was a key find for Hotel Indigo downtown, getting a relationship with one of the airlines to send employees there. From what I'm told, the newer hotels on 1/9 (like the adjacent Best Western, I'm not talking Kings Inn) as well as the Indigo do well when it comes to occupancy rates.I'd be surprised if someone would undertake a multimillion-dollar project like this without first studying the market to ensure there is one.So you would prefer a _____ instead on that land? (fill in the blank)

  3. Great. I thought Indigo would go after the Continental crew since they're so close to Newark-Liberty. The more people the better. Good luck to them.

  4. As I said rotten, I wasn't including Kings Inn in my reference. I seriously doubt Section 8 tenants were getting placed into the Best Western.

  5. let's all please ignore rotten's comments and let them continue to be a constant reminder that free speech is alive and well on the internet even though you have nothing eloquent or contructive to say or as proof that computers are getting easier to operate…

  6. When relatives came to visit I had them stay at the Hotel Indigo and they loved it. The only issue was trying to find shopping and grocery items so they just took their money and went into the city. If they had the option I am sure they would of just stayed in town. The only other decent hotel nearby is the Comfort Suites. There are too many infested hotels in the area and lack of quality so a new one would add to the choices. I understand what rotten is talking about but I don't forsee these new hotels acquiring lower income families.

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