A new 87-room
Towneplace Suites by Marriott extended-stay hotel and neighboring Dairy Queen are being proposed along Corporate Center Drive in Oconomowoc.
The two new buildings are proposed on 3.4 acres directly west of the intersection of Corporate Center and Oconomowoc drives.
The Dairy Queen will total roughly 2,600 square feet and contain 72 indoor seats and 20 patio seats, according to plans filed with the city. It will employ about 35 people.
North Liberty, Iowa-based
Kinseth Hospitality Cos. is working with West Bend-based
American Cos. on the project. American Commercial Real Estate Services assisted Kinseth in finding a location to build in Oconomowoc.
The developer for the Dairy Queen building is Double Seven Development, of Eden Prairie, Minnesota.
Both projects are up for approval next week by the city's Architectural Commission and Plan Commission. City staffers expressed support for the projects in a report to commission members.
Adam Williquette, president of American Commercial Real Estate, said Kinseth acquired the land in November 2019. There was an extra acre on the site that it didn't need to build the hotel, so Williquette began looking for interested buyers, he said.
He expects to close on the sale of the 1-acre parcel to Dairy Queen in March. Groundbreaking for both projects should happen in April, he added.
Tony Colvin of Mid-America Real Estate Group is representing Dairy Queen in the deal.
Williquette said Oconomowoc will be the 14th hotel American Cos. have worked on with Kinseth. Other recent hotel projects include a
68-room Towneplace Suites in West Bend.
He said even though the hospitality market has been significantly impacted by the COVID-19 pandemic, extended-stay hotels have performed relatively well.
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