New Georgetown Hotel Closer to Reality as Developers Secure Financing

The developers behind The Capella Georgetown have secured necessary financing and can now begin construction, possibly delivering the planned boutique hotel at 1050 31st St. by January 2013.

The new hotel will emerge from the makeover of an existing five-story, free-standing commercial building on 31st Street, next to the C&O Canal. According to a release from the developers from March 2010, the hotel will feature a canal-side restaurant and lounge, an executive boardroom for guest use, and, on the rooftop, a pool, bar, and full-service spa.

Though the rooftop pool and bar might be wishful thinking, considering the Advisory Neighborhood Commission and Old Georgetown Board's aversion to such activity on rooftops. For instance, while discussing a , Inc. project, OGB member Anne Lewis said the rooftop design was unsuccessful and “there are going to be fat people in bikinis out there and nobody wants to see them."

According to the Washington Business Journal, the Capella team secured additional financing by bringing on major equity partner in Point Ford Management Ltd., an Indonesian investment firm. Along with construction financing from PNC Bank, ICG Properties, Castleton Holdings and Horst Schulze of Capella Hotels can begin the $45 million project on the .

Bradley, the principal owner of D.C.-based Castleton Holdings, told the Washington Business Journal that they hope to begin construction on an expedited schedule in the next few months.