Hotel Lancaster renovations land $6.25M state loan
Renovations at The Hotel Lancaster received a $6.25 million boost from the state Tuesday with the approval of a loan from the Building Pennsylvania program.
The independent hotel is in the midst of a major revamp as its owners look to modernize the 140,000-square-foot, 221-room building at 26 E. Chestnut St.
The $6.25 million loan will go toward renovations that the ownership group, led by local developer John Meeder, started when it bought the business in 2013. The space has served as a hotel since the 1960s, when it was constructed as part of the urban renewal of the adjacent Lancaster Square. But it fell on hard times under the previous owners.
Meeder and his fellow developers changed the hotel's name from The Hotel Brunswick to The Hotel Lancaster and quickly started renovations. The group plans to continue renovations over the coming months before rebranding the business as a Holiday Inn.
State officials expects the newest round of improvements to support 30 jobs and create $18.7 million in economic investment. The new $6.25 million loan comes from the Commonwealth Financing Authority's Building Pennsylvania program, which supports construction projects in small and midsized communities throughout the commonwealth.
Past beneficiaries of the program include Rock Lititz LP, which received $3.2 million loan for construction of its campus in 2015.