A new four-story hotel and a neighboring three-story affordable housing apartment complex could be coming to vacant land along Highway 111 in La Quinta, with its city council agreeing to sell land for the hotel for about $2 million.
The new AC Hotel by Marriott, which is planned for vacant land located south of Highway 111 and east of Dune Palms Road, calls for for 113 rooms, as well as a later buildout of a 3,000-square foot pad for either retail or dining.
The three-acre property purchased by Indian Wells Hospitality Group, LLC was part of a broader six-acre parcel owned by the city. The property has been subdivided, with its southern half along Vista Cortina Lane to be developed as a three-story, 96-unit affordable housing community by Pacific
West Communities.
The city council agreed to sell land for the hotel at its meeting Tuesday, Sept. 15, but has yet to approve a sale agreement for the land where the affordable housing will go.
The planned hotel will be located just west of an existing Residence Inn and across the highway from a Chick-fil-A that opened in 2025, and its developers told the council it aims to attract business clientele, in addition to the usual seasonal visitors who come to town for events such as the nearby Coachella Valley Music and Arts and Stagecoach festivals. AC is a mid-priced Marriott hotel brand that has 151 locations in the United States and scores in other countries, according to its website.
The $2.09 million sale, which must close escrow within nine months, marks the latest of several efforts to develop new lodging in La Quinta. In August, the city council agreed to sell 3.5 acres of land to Gather Capital Inc. for about $2.55 million to develop a new “upscale” hotel near Old Town La Quinta.
The affordable housing component of the development also aligns with other city-led efforts to bring more of those developments to the Highway 111 corridor.
In 2023, the city agreed to buy 5.2 acres for $3.6 million just northeast of Highway 111 and Dune Palms Road, with plans to turn part of the land into affordable housing. In 2022, the city bought a 15-acre lot, just a block west along Highway 111, for $8.6 million. The city’s online project dashboard does not show any active development plans for either of those parcels so far.
The council approved the latest transaction by a 3-0 vote, with Councilmember John Peña absent and Councilmember Steve Sanchez recused due to a potential financial conflict. A development agreement for the hotel will be considered by the council at a future meeting.
Tom Coulter covers local government and politics. Reach him at thomas.coulter@desertsun.com.
This article originally appeared on Palm Springs Desert Sun: New hotel, affordable housing planned off Highway 111 in La Quinta
