Kutztown University announced Thursday it is planning to build a 100-room Hampton Inn & Suites near the campus.
The hotel would be built at a cost of $13 million on the site occupied by the Campus Inn on Kutztown Road in Maxatawny Township, which would be demolished.
Construction on the Hampton Inn is expected to begin next spring and open in spring 2019.
The four-story hotel will include an indoor pool, fitness room and two small conference rooms.
The Kutztown University Foundation, through its investment subsidiaries, Ursus Aureus and Golden Bear Ventures, closed Wednesday on the Campus Inn property.
Ed Richmond, chief financial officer of the foundation, said the hotel is one of the ways the university is growing its foundation “beyond what traditional investment strategies can provide.”
The Kutztown University Foundation has a $20 million endowment which helps to pay for student scholarships.
“An investment such as this will provide additional scholarship funds for the students,” Richmond said in a statement.
“We expect this investment to benefit not only the students, but the university, the region and the commonwealth – in the investment income it will earn for the scholarship funds, the exciting new facility that will be available to Kutztown visitors and in additional tax revenues it will provide to local municipalities and the state.”
Scott Dorn, chairman and president of Ursus Aureus and Golden Bear Ventures, said the venture is “all about economic development and is a long-term investment for everyone involved.
“We expect the new hotel to attract visitors to the university, the Kutztown Folk Festival, Kutztown Fair and local businesses, and the many attractions in the East Penn Valley.”
The hotel will be managed by TKo Hospitality Management of Wilmington, Del.
KCBA Architects of Hatfield will design the project.
“While the hotel will be customized to fall in line with the superior Hilton/Hampton Inn and Suites model, we will add a local flare to the property,” Dorn said.