AC by Marriott hotel to be built on parking lot at Roosevelt Field mall

A second hotel is being planned for the parking lots around Roosevelt Field mall, officials said.

The Uniondale mall’s owner, Simon Property Group, and OTO Development want to construct a 170-room hotel. It would be located on 1.7 acres of asphalt south of Macy’s department store and across the street from the Residence Inn by Marriott hotel, which the two companies opened in 2020.

The $75.6 million hotel would be part of the AC by Marriott chain and serve a more upscale clientele than the Residence Inn, said Robert Cooley, a real estate manager for OTO, which is based in Spartanburg, South Carolina.

“AC is meant to attract a higher-end business traveler, more of a suit-and-tie crowd … [and on weekends] there will be space for social events and weddings,” he told a meeting of the Nassau County Industrial Development Agency last week. “There definitely is a demand for it.”

Cooley was responding to a question posed by IDA chairman William Rockensies about the need for a second hotel in the area.

Overall, hotels on Long Island had an occupancy rate of 70.4% last year, up nearly four percentage points from 2022, according to the hospitality-industry data provider STR.

At the Roosevelt Field Residence Inn, Cooley said 30% of lodgers spend a few days because the rooms have full kitchens. The proposed AC Hotel, on the other hand, would have a bar in the lobby and a restaurant serving breakfast and dinner, he said.

There are no AC Hotels on Long Island; the nearest ones are in Times Square and lower Manhattan, and in New Jersey. The standard room rates at those properties as of Thursday were between $169 and $219 per night.

The IDA board voted unanimously to begin negotiations with Simon/OTO for tax breaks.

The developers have requested 20 years of property-tax savings, a sales-tax exemption of up to $2.8 million on the purchase of construction materials, equipment and furnishings, and a reduction in the mortgage-recording tax of up to $340,200, according to the application.

In return, the AC Hotel would employ 32 people, with 14 of those being paid between $30,000 and $60,000 per year, the application states.

Daniel P. Deegan, the developers’ real estate attorney, said the IDA awarded tax breaks to the Residence Inn.

“The idea here is to build up Roosevelt Field, which already is a big sales-tax generator for Nassau County … [the AC Hotel] would give discounts to people for shopping at the mall,” he said. “We believe the hotel will draw a significant number of visitors from outside of Nassau County and Suffolk County.”

Deegan said the hotel is expected to open in the fall of 2026.

Separately, a medical office has been proposed for the parking lot south of the Nordstrom department store.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.