North Carson hotel to grow lodging options in city

With pipes and utilities going in the ground in north Carson for a new four-story, 91-suite hotel, community stakeholders see a bright future for lodging in the capital city.

“We are thrilled to have Home2 Suites come to Carson City. It’s a welcome addition to the capital,” said David Peterson, executive director of Visit Carson City.

Reno-based Metcalf broke ground on the 57,000-square-foot structure in mid-June. Located on the northeast side of the intersection of Silver Oak Drive and North Carson Street, the project is expected to be completed by the fall 2025.

Peterson said Carson is seeing growth in tourism, domestic and international, but has been “limited in bringing larger groups, tournaments, and other special events here due to the limited capacity of hotel rooms.”

“We are seeing larger groups going to Reno/Sparks and the Lake Tahoe area because of the limited room inventory in Carson City,” Peterson said. “We also have seen a rise in the number of companies having an interest in moving to Carson City and the need they have to temporarily house their employees at a lodging property until they decide on permanent housing.

“The limited capacity also places stress on the lodging properties during the summer season, when special events, visitation and all activities are at peak levels. New properties will help alleviate that issue. During Nevada’s legislative session every other year, lodging properties also book up, causing additional stress on the properties to be able to provide rooms for our leisure and group travelers.”

Visit Carson City sees the capital as the central point of a visitor’s experience in the region, Peterson said.

“With close proximity to Reno, Lake Tahoe, Virginia City, and Carson Valley, Carson City benefits as an overflow destination for room nights when large events occur in Reno/Sparks and the Lake Tahoe Basin,” he said. “Increasing the number of lodging options in Carson City will enhance its competitiveness by attracting new special events, sports tournaments and larger groups to Nevada’s state capital.”

Bryce Clutts, president and CEO of Metcalf, was on site at the new hotel July 24. The company previously estimated the value of the project to be more than $19 million.

“I think it not only provides an alternative to the resorts in Tahoe, but I think you have a lot of softball tournaments, soccer tournaments, baseball tournaments, and I think that attracts a lot of people to the area,” Clutts said. “During the legislative session, there’s a demand during that period. So, I think it’s more than just Reno and Tahoe. You know, Carson City is growing, and there are just other opportunities and needs for hospitality.”

Home2 Suites will be the eighth hotel Metcalf has built for Carson City Hotel LLC, whose managing member, according to filings at the Secretary of State’s Office, is Jaswinder Dhami. Other properties Metcalf built for the Dhami family include Holiday Inn Express hotels in Reno, Minden and Winnemucca as well as the Courtyard Marriot in Carson City.

“We’ve been building for the Dhamis for close to 20 years,” Clutts said.

During a Carson City Planning Commission hearing in December for a special use permit for the new hotel, Dhami described the project as a high-end extended-stay hotel. At the time, Dhami said demand for such hotels was growing.

“Basically, they’re suites, so they have little kitchenettes versus just having a room and a restroom,” said Clutts.

In the face of uncertain economic conditions for development, hotel companies have recognized the need to work with developers, Clutts said.

“They recognize these are challenging economic times, so they’ve been flexible and willing to work with the developers and contractors to make concessions without really affecting the aesthetic design or the core brand elements,” he said.

Peterson provided the Appeal with data showing taxable hotel/motel room revenue and occupancy rates in Carson City increasing. In fiscal year 2018, taxable room revenue was around $20.6 million. That dropped to $16.9 million at the end of fiscal year 2020 when the COVID-19 pandemic hit. In fiscal year 2023, however, taxable room revenue not only recovered, but increased to $28.5 million. And the taxable occupancy percentage over the same time went from 57 percent to 64 percent.

Currently, there are 1,345 hotel/motel rooms in the city, according to the data Peterson provided.

“The future is bright,” he said. “There are planned renovations of existing lodging properties, showing infrastructure development by existing ownership groups in the Carson City market. In addition, planned expansion of existing properties is on the near horizon. I wouldn’t be surprised to see more lodging property construction take place over the next few years.”

Construction of Home2 Suites is expected to go vertical by mid-September. Clutts commented on the construction site itself, pointing out workers in the dirt installing underground plumbing and all the people who make a project succeed.

“What you see here is the last fronter,” he said. “We’re still out here with tape measures, boots and jeans, building the future.”