O'Beirne, executive director of the locally based Construction Contractors Association of the Hudson Valley, said at the ground-breaking ceremony that Airport Properties is bullish on the airport's future and is hopeful to build more commercial space on property it subleases from the operator of Stewart International Airport.
"This is phase one, our first project," O'Beirne said. "Market driven, in other words if the market stays here and the airport continues to grow, in the next seven to eight years we plan two more hotels, two office buildings, a bank and a freestanding restaurant."
He later said that in total the firm's developments at the airport could cost between $80 million to $90 million.
The Homewood Suites by Hilton will cost approximately $12 million to build. With hard and soft costs factored in, O'Beirne says the venture will be a $15-million project.
The hotel is expected to take advantage of an expected sharp increase in business at the airport. Recently, discount carriers Jet Blue, Air Tran and Allegiant Air announced they plan to inaugurate flights out of the fledgling Orange County airport that for some time has suffered from declining air passenger loads.
Another major development taking place at the airport is the sale of the operating lease of the airport itself. On Sept. 18, airport operator National Express Group PLC, headquartered in London, announced it was talking to interested parties that would like to take over the remainder of the lease the firm now has for Stewart International Airport. In 2000, Gov. George Pataki privatized Stewart Airport and signed a lease deal with National Express in 2000. Only six years into its lease, the firm is looking to get out of the airline business entirely. The company announced that its board of directors made the "strategic decision so that the company can focus in on its core business which is buses and trains."
National Express expects to make a selection in the near term, and complete the transaction by year-end.
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