Q: What happened to the 239 project on Bayshore? It is dead in its tracks. – D.R., Naples
Q: What is going on (or not going on) with the 239 building on “Kelly Road”? – Charles Brady, Naples
A: Plans for a new boutique hotel with a restaurant at 3467 Bayshore Drive in East Naples are still alive but they are undergoing revisions. Changes in the plans have slowed down the project.
Initially announced as The 239, the local project was redubbed The Hotel on Bayshore last year, but the four-story, eight-suite hotel is expected to be rebranded again before opening.
“The owners, which are me and my partner, Adam Homan, hired a hotel operator/manager, a management firm that is helping us with sort of a redesign,” said Michael Whalen of New Era Construction LLC. “They’re called the Palisociety. They’ve got 40 or so boutique hotels around the country and 20 or so restaurants inside of them, and it’s a perfect fit for us.”
A hospitality operating company, Palisociety specializes in distinctive hotels and residences. While the majority of its properties are near its California headquarters, the lodging company has locations in nine states, including one in Florida: the 36-suite Palihouse Hyde Park Village in a historic neighborhood of Tampa.
“So, they have helped us tweak our design and our direction since they’ve come on board with these little bit of changes,” Whalen said. “I’ve got to change some of the drawings and resubmit to the county for permitting purposes. So, officially I tell people we’re in redesign.”
While the pouring of the concrete roof has been delayed, work continues on the mixed-use development on the southeast corner of Bayshore Drive and Areca Avenue.
“We’re trickling along with what we can do without removing anything that will affect the redesign,” Whalen said. “We’re doing the plumbing underground right now. It’s all good.”
Palihouse also will operate the hotel’s restaurant, but it’s too early in the process to report details such as the restaurant’s name or cuisine.
“It’s a super-cool themed restaurant that’s going to anchor our hotel,” Whalen said. “It’s going to be something else, I’ve got to tell you, after many, many talks with the Palihouse people. It’s a great partnership we’re entertaining.”
At the same time, New Era’s adjacent companion project will upgrade and repurpose a dozen garden villas on Areca Avenue as extended-stay accommodations.
“We’re conjoining our property behind us, to the east of us, that we own that has 12 bungalow units that we’re making the same design concept,” said Whalen, noting that the combination of the hotel suites and bungalows will bring the available transient units there to 20.
The new name for the hotel has not been decided, but Palisociety’s hotel brands include Arrive, Le Petit Pali, Palihotel and Palihouse.
“It probably will be a Palihouse type of wording — one of their coined words,” Whalen said.
The hotel’s opening date is targeted within the next year; the plan is to be open for next winter season.
“We still have about nine to 10 months of work once we get going. We cross our fingers that it’s this year,” Whalen said.
Future hotel for sale
DSH Hotel Advisors has been retained as the exclusive broker to market for sale The 239 Hotel & Resort, soon to be Palihouse Naples. Tampa-based DSH brokers Dennis Hopper and Randy Taylor added the unpriced listing Feb. 21 for the 20-key boutique hospitality venue and retail development on 1.08 acres in the heart of the Bayshore Arts District.
“Set for completion in 2025, this best-in-class asset is crafted to attract affluent travelers and discerning retail tenants, offering an unparalleled luxury experience in one of Florida’s most sought-after coastal destinations,” reads the marketing brochure. “While full acquisition is preferred, ownership is open to strategic partnership or joint venture opportunities, subject to approval.”
A property overview on LoopNet sums up the investment opportunity and provides more details for the hotel:
“Selected as the operating brand, Palihouse is a high-end boutique hotel concept renowned for its sophisticated lifestyle experience, catering to elite travelers in major luxury markets. The hotel will feature eight expansive luxury suites, each spanning over 1,000 square feet with a private bedroom, kitchenette and balcony, offering an elevated, residential-style retreat. Complementing these accommodations, 12 mid-century modern garden villas will be nestled within a lush Zen garden and tiki lounge area, creating a serene and exclusive atmosphere. Guests will also enjoy a rooftop pool and bar, delivering a refined social experience with curated cocktails and breathtaking views. The property will include 6,915 square feet of prime retail space, catering to high-end tenants, along with a signature 155-seat restaurant, offering a destination-worthy dining experience for both visitors and locals. Designed to blend luxury, lifestyle, and investment appeal, The 239 on Bayshore is poised to become Naples’ next premier hospitality and retail destination.”
The “Tim Aten Knows” weekly column answers local questions from readers. Email Tim at tim.aten@naplespress.com
