Franchisee: New Ulm is correct market for new Microtel hotel

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- Construction on a new hotel in town is under way, and could open by spring.

Edward Pompeian, co-owner of Realty Growth Inc. of Rochester, is bringing a Microtel franchise hotel to New Ulm. The 63-unit, three-story building will be erected on 19th South Street, which is the former site of New Ulm Brick and Tile.

"We think there is a need, and we think we have a good product for this market," Pompeian said Thursday.

According to a building permit filed with the city last month, the new hotel is expected to cost $1.8 million.

Realty Growth Inc manages and develops commercial properties, including a hotel in Rochester. The company has been in business for 25 years, Pompeian added.

"We've been looking at (New Ulm) for two years, maybe three," Pompeian said. "We would have been there sooner, if we had found the land."

He added: "I think it was an excellent spot, right on the main drag."

Brian Tohal, coordinator of the New Ulm Economic Development Corporation, said he is pleased about the hotel coming to town.

"Anytime a new business comes to town, it's good for New Ulm," Tohal said. "We look for that site to see additional development in the future."

Although Pompeian purchased the land earlier this year, he held off on making an announcement about a new hotel. The company only recently finalized its franchise agreement with Microtel.

Work on the site, across from Hy-Vee, has already begun. Pompeian hopes the outer framework can be completed this fall, with interior construction occurring all winter.

The hotel will feature a combination of suites, single- and double-bed rooms. Pompeian said it will be a fairly standard hotel, but with all new and modern amenities.

Realty Growth Inc. will own the hotel and manage it from Rochester. A local manager will be hired and report to the Rochester office, Pompeian said.

Realty Growth conducted a market study that showed a need for more hotel space in New Ulm, Pompeian said.

"We believe you're losing a lot of business to other communities, because you don't have the facilities. We know that for a fact," he said. "People stay in Mankato, or Sleepy Eye."

Hotel space is even tighter during larger events in town, such as Heritagefest or Oktoberfest.

"In peak time, there is a definite need," Tohal said.

Pompeian believes the new hotel will improve tourism and help the local economy.

"We hope to keep the business in New Ulm," he said.