A startup Calgary developer is planning to transform underused downtown office space into a fully accessible luxury hotel and residential building, with Waldorf Astoria as a potential brand partner. Russell Petiot, CEO of Precedent Developments, says the project would be a first in Canada, catering to mobility-challenged individuals with high-end accommodations and adjacent residential units.
Project Details
The proposed 23-storey, 230,000-square-foot development would be split roughly evenly between hotel and residential uses, featuring 110 hotel rooms and 90 residential units. Restaurants and bars would occupy the ground, second, and top floors. Petiot estimates the conversion will cost $100 million.
Target Demographic
The project focuses on an aging, affluent demographic that may no longer be able to live in large luxury homes but still desires upscale living. Petiot emphasized that luxury spaces should be fully accessible, a principle driven partly by his own experience with a degenerative nerve disease.
Branding and Partnerships
While Waldorf Astoria has not been confirmed, Petiot noted that Hilton, the parent company, is eager to expand in Calgary and has shown interest in the investment. The city already has 10 Hilton-branded hotels.
Current Status
Precedent Developments is still searching for a suitable downtown building, having narrowed the options to two properties. The project offers flexibility, with the potential to convert the hotel portion into assisted living after 15-25 years if demand shifts.
Market Context
Calgary's downtown office sector has struggled since the 2014-15 oil price plunge and the COVID-19 pandemic, with vacancy rates exceeding 30%. This conversion is part of a growing trend of office-to-residential transformations in the city.
