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Proposed hotel could lead to glut

A new downtown hotel — as part of the convention centre proposal — is worrisome to other hotel operators.

A new downtown hotel — as part of the convention centre proposal — is worrisome to other hotel operators.

Ben McCrea’s Armour Group is working on an office-building and hotel development called Queen’s Landing in downtown Halifax. But if Rank Inc.’s proposal goes forward, it would set Queen’s Landing back several years, McCrea states.

“That will put more pressure on the hotel business downtown ... there’s going to be a price war and an occupancy war,” he said.

“Right now there really isn’t a market but we hope in a year or two it will rebound, but with this it will be years and years.”

Jeff Ransome, general manager of the Halifax Marriott Harbourfront Hotel and also the president of the Hotel Association of Nova Scotia, applauds the convention centre but is a little worried about a big, new hotel in the area.

“As an operator I look at the new hotel with mixed emotions: It’s great because it’s a necessary feature so we can get our convention centre up and running, and then I think there’s a period of time where the hotel industry is at risk because of the fact there will be more rooms on the market,” he said.

There are about 12 hotels in downtown Halifax, half of which have convention space.

 
 
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