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West Allis approves $4 million measure for Home2 Suites hotel project

West Allis approves $4 million measure for Home2 Suites hotel project
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West Allis considering $4 million guaranty for Cobalt Partners Allis Yards hotel

Home2 Suites hotel southeast of West Washington and South 70th streets as part of its $130 million-plus Allis Yards project. The extended-stay hotel was first presented to city leaders for approvals in January 2019. Construction hasn t yet moved forward, and the COVID-19 pandemic is a big reason for that. Scott Yauck, president and chief executive of Cobalt, said he had all the financing lined up for the $20 million hotel development last spring. But lending on new hotel projects dried up once the pandemic hit, which deeply impacted the hospitality industry. The city could help firm up the project financing by approving a guaranty of up to $4 million on a roughly $10 million Waukesha State Bank loan. Cobalt said this would limit the bank s exposure and allow it to execute the loan. The remaining financing comes from equity and New Markets tax credits.

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