Tight financial markets stall one North Bend hotel project
April 19, 2011
By Dan Catchpole
Financing problems have stalled one North Bend hotel project but another one appears ready to go ahead.
North Bend city officials hope that a hotel in the city will bring in revenue and help the city’s branding campaign.
Snoqualmie Valley resident George Wyrsch wants to develop a hotel near Interstate 90’s Exit 31, but has had difficulty securing financing.
“I’m waiting for the financial markets to loosen up some,” he said.
He last tested the water in November.
“It’s still anybody’s guess” when the markets will loosen up, he said.
Wyrsch has never developed a hotel, though, which could be making it more difficult for him to get financing.
The other developer, New Sky, appears to be having an easier time. Paul Pong, a Bellevue-based hotel developer, owns the company. Pong has a track record of successful hotel development, which makes him attractive to creditors. He could also be paying for the building out of pocket.
Pong and his consultant, the Abbey Road Group, did not respond to requests for comment.
New Sky has filed paperwork to begin the process for developing the land it owns on the east corner at the intersection of Bendigo Boulevard and South Fork Road.
Wyrsch said he isn’t concerned about the competition.
“We’ve always anticipated there would be two to three hotels in North Bend,” he said.
That would be OK with Mayor Ken Hearing.
Hotels mean more revenue for North Bend, and they will help with the city’s marketing campaign to brand itself as a destination for outdoor enthusiasts.
“People who stay the night in a community tend to spend substantially more money than day trippers,” Hearing said.
It could also boost North Bend’s claim as a destination spot for outdoor recreation.
Visitors will be able to spend more time hiking, biking or doing some other activity, and won’t have to go to Issaquah for a hotel room or go home at the end of the day, Hearing said.
Dan Catchpole: 392-6434, ext. 246, or editor@snovalleystar.com.
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