Work Expected to Resume This Spring on Hilton Boutique Hotel Project

By Kevin Collison

Work on renovating the historic Palace Clothing Co. building at 12th and Grand into a boutique hotel is expected resume this spring following a lengthy delay caused by the Covid pandemic.

Mark Patel, the developer of the planned 110-room Canopy by Hilton, is accepting bids and finalizing a general contractor for the $30 million project that he first announced in late 2018.

“It was paused due to the pandemic,” Patel said.

He also regretted the recent blighted look of the historic building, which has had plywood covering its window openings.

“We’d like to apologize to the community for the appearance of the building during the pandemic,” Patel said.

“We did have vandalism and due to the pandemic our financial resources were restricted. We’ll address that fairly soon.”

The Palace Clothing Co. building opened in 1924 in what was then the heart of downtown’s premier retail district. The men’s and boy’s clothing store was at one time the largest of its kind in the West, according to its National Register of Historic Places application.

A rooftop bar and cafe is planned for the Canopy by Hilton. (Image from Palace Hotel LLC)

It eventually closed in 1964 and the building was vacant until 1972, when it was covered with a metal facade and its interior was extensively remodeled. The facade was removed in 1984 and the building had been used for offices.

Patel estimated the hotel project should be completed by early 2023.

The lobby in the three-level atrium of the Canopy by Hilton will feature a bar and bistro with free breakfast for guests, according to Patel.

The eighth-floor rooftop will have a bar and restaurant that includes a private lounge that can be rented for events. The rooftop will be designed to function year-round with indoor and outdoor seating.

The basement level will have meeting rooms and an event space that can accommodate up to 300 people. There also will be a fitness room on the seventh floor.

In another downtown hotel project, Patel said work also is expected to resume soon on the conversion of the former Comfort Inn at Seventh and Admiral into a 110-room Holiday Inn.

He said that $4 million project also had been delayed by the Covid pandemic and should now be completed in about six months.

Liam Dai contributed to this report