The University of Mary Washington Foundation has announced it has received financing to build a $13 million-plus select-service hotel in the second phase of the Eagle Village mixed-use development across from the University of Mary Washington in Fredericksburg.
Financing for the project has been obtained by Cardinal Bank, headquartered in McLean, Virginia. Owned by Cardinal Financial Corp., the bank has 27 branches in the metropolitan Washington area, including Stafford and Fredericksburg.
“Cardinal Bank has successfully financed more than $50 million in commercial projects in the Fredericksburg/Stafford region and is excited to be expanding this success with the University of Mary Washington Foundation’s Eagle Village hotel project,” said Todd Hewitt, executive vice president.
The UMW Foundation has formed a new company called Eagle Hospitality LLC, which will own and manage the hotel. Currently, the foundation is in negotiations to select a prospective hotel franchise and management company.
“The UMW Foundation and Eagle Hospitality LLC are delighted to announce our fiscal partnership with Cardinal Bank,” said Jeff Rountree, executive director and CEO of the UMW Foundation.
“Cardinal’s staff of project managers knows the hotel business well from both the banking and operational side of the house. They are a perfect fit for our hospitality development team, and we look forward to constructing and opening a first-class hotel property with them.”
Initial plans call for a hotel with approximately 100 rooms and suites, meeting and conference areas, and mixed-used retail space. The hotel will be located between Giant Food and the new section of Eagle Village, and will be connected to the campus of Mary Washington Healthcare by a connector road to be completed and open within the next six to eight months.
The City of Fredericksburg recently approved a $310,000 incentive agreement with the UMW Foundation to help with developing the hotel.
“The City of Fredericksburg’s economic incentive was essential in completing the finance package for the hotel with Cardinal Bank,” Rountree said. “The city’s incentive, coupled with a matching incentive from the Commonwealth of Virginia, adds up to a significant sum of $620,000. This is truly a win-win situation for all parties involved, with the final outcome being a new business opening in the city and the tax income and job creation that will follow.”