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January 10, 2025

Former LAZ Parking HQ in downtown Hartford now eyed for hotel conversion

COSTAR 15 Lewis St., Hartford
By Michael Puffer

Downtown Hartford lost hundreds of hotel rooms since the COVID-19 pandemic as owners converted struggling hospitality buildings into apartments. Now, a partnership involving some of Hartford's most active developers sees an opening for a new boutique hotel of about 90 units.

More than a year ago, the Capital Region Development Authority approved a $7 million loan to help turn a 53,531-square-foot former LAZ Parking headquarters office building in downtown Hartford into 78 apartments.

LAZ CEO Alan Lazowski and partners have since shifted course and are now pursuing a boutique hotel concept for the 1925-vintage building at 15 Lewis St.

The team also includes Hartford-based developer Lexington Partners, a longtime Lazowski business partner, and Shelbourne Global Solutions — downtown Hartford's largest landlord. 

Lexington President Chris Reilly, on Friday, said the partners abandoned the idea of a hotel after the COVID-19 pandemic tanked the hospitality industry, drying up any potential lenders. 

But with the industry rebounding and a dramatic drop in hotel rooms in the Hartford market in the intervening years, Reilly said he's confident lenders and investors will support the estimated $37 million project. 

“We think we can put the right financing together at this point,” Reilly said. “It’s a much more credible business case to make for a hotel.” 

Current plans are for a hotel of about 75 to 90 rooms, which would make use of the building’s historic charm and location right off Bushnell Park, with a good view of the gold-leafed state Capitol dome. The partners plan to restore a restaurant space on the first floor and fit out new rooftop restaurant space. The two spaces could run with a common or separate operators.

Reilly said he hopes to begin construction this fall and have the hotel ready for launch in early 2027. 

Reilly said financing will include state and federal historic tax credits, a loan and perhaps outside investors. He also expects to apply to the Capital Region Development Authority (CRDA) to boost its commitment of a $7 million low-interest loan for rehabbing the building, but he is not yet certain by how much. 

CRDA Executive Director Michael Freimuth, on Friday, said his agency is comfortable supporting the $7 million investment and perhaps more. 

A new hotel would be a big boon for Hartford, which has lost about 700 hotel rooms following the COVID-19 pandemic, mostly through conversions into apartments, Freimuth noted. The drop-off can be attributed to the conversion of underused hotel spaces into apartments, including transformations of the Homewood Suites by Hilton, the Red Lion Hotel and half of the Hartford Hilton Hotel, all located in or near the city center.

Lexington and Lazowski are the majority owners of the Abner Hotel in Litchfield, a boutique hotel that opened last September, following the conversion of a historic courthouse. They partnered with Massachusetts-based boutique hotel operator SALT Hotels. 

The partners expect to use a third-party operator for the Hartford hotel and are in discussions with SALT to fill this role. 

The Hartford hotel’s prime target will be the weekday business traveler, but the boutique concept and location in a budding neighborhood around Bushnell Park could help crack into the weekend traveling crowd, Reilly said. The hotel would also cooperate with the Connecticut Convention Center to reserve blocks of rooms for events. 

The property at 15 Lewis St., according to land records, is owned by a limited liability company controlled by Lazowski and Bernard Bertram, a managing partner with Shelbourne. 

Lazowski, Shelbourne and Lexington have collaborated on other projects, notably several conversions of office space into hundreds of apartments around the Pratt Street retail district in downtown Hartford.

 

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