Pacific Grove City Council approves amended plans for boutique hotel in downtown.

Pacific Grove is getting an upscale boutique hotel in the downtown area after the City Council voted 7-0 yesterday, Wednesday, March 16, to amend the structure's building plans, allowing for three extra feet of height. Construction is expected to begin this summer.

The Pacific Grove Hotel, formerly known as Hotel Durell when it was owned by Nader Agha, was purchased by a local group of investors in 2020 and is being constructed by West River Hotels. It will be operated by Kimpton Boutique Hotels.

When the site on Central Avenue was purchased by the new owners it came with plans already approved by the City Council in 2018, but it was for a hotel catering more to budget travelers. The plans were revised to create a four-star hotel with wider rooms and taller ceilings. The room count was reduced from 116 to 102 but the changes required that the roof height come up three feet. 

On Wednesday, several residents objected to the height change, including one second-story resident of the Holman Building represented by a real estate attorney at the council meeting. The attorney acknowledged that there are no legal rights to views but argued Holman Building residents purchased their condominiums based on the plans approved in 2018.

The changes approved by the council also included taking some parking off of a lot across Fountain Avenue and placing it all under the building using vehicle lifts, as well as having employees park offsite, possibly in a city-owned lot behind the movie theater on Lighthouse Avenue. Residents argued that parking downtown is already challenged. They urged the council to vote no for the changes.

Council members instead praised the new hotel and transformation to upscale lodging, citing future benefits to the city, including revenue from more transient occupancy taxes. City Manager Ben Harvey says he expects it will be an asset to downtown businesses because it will bring more foot traffic that will translate into sales.

A plan to add guest yoga classes and an organic chef's garden to the hotel's rooftop was scuttled after developers recently met with residents who objected to any activities there.