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Another hotel planned for south Medford Wednesday Feb 1, 2017 at 5:03 PM Feb 1, 2017 at 5:03 PM Greg Stiles Mail Tribune @GregMTBusiness A Springfield hotel operator plans to build a four-story, 93-room hotel off Center Drive in south Medford. Sycan B Corp. closed on its acquisition of 2.4 acres adjacent to TownePlace Suites and SpringHill Suites Monday following its Jan. 20 Site Plan and Architectural Commission appearance. Sycan B President Richard Boyles said the area was ripe for additional units, and the opportunity to develop a Holiday Inn Express fit into the company's plans. "There was an opportunity to secure a brand we like and the location that turned our attention to the Medford market again," Boyles said. "Financing is available at good pricing and we've had pretty good performance there over the years. The market metrics in the Medford-Central Point area do warrant construction of one more hotel. But I wouldn't encourage anyone to do it after we do." Boyles said the plan is to break ground in summer 2018 and open during spring 2019. "We're hoping we can advance that a bit, but it's a realistic date," he said. "Some prefer to open properties in early spring or late winter. We'll know the earliest possible date once we've gone through (construction) bidding." Another Holiday Inn Express has operated since 1998 a few blocks away, behind the Harry & David Country Village. Longtime Medford businessman Vin Mehta bought hotel property for $6.15 million in September 2008. His 10-year licensing agreement with Atlanta-based InterContinental Hotels Group runs into 2018. "I was planning to renew the license for another 10 years," Mehta said. "It's been a good-performing property since Day 1." He said the hotel brought in just under $2 million this past year. "If they were planning to make changes, they didn't tell me," said Mehta, adding he will consult his attorney whether to take legal steps or simply begin looking for a new motel brand. Licensees typically have a five-mile exclusive territory for their brand. Sycan B operates 13 hotels and has six more in the works, Boyles said. Among its holdings are the Courtyard by Marriott at the Medford airport and Holiday Inn Express & Suites in Central Point. The Central Point location is among hundreds of the nearly 2,500 Holiday Inn Express properties undergoing Formula Blue design renovation by IHG. The makeover includes wide-open lobbies, color changes and sound-barrier headboards. "Periodically, brands have to reinvent themselves to remain relevant and meet expectations," Boyles said. "That happens with most successful brands. We wanted to move upward and compete with a slightly higher competitive set. It takes a significant reinvestment." The proposed Holiday Inn Express follows on the heels of the Hilton Garden Inn, which was the first new hotel constructed after the recession when it opened at the end of 2016. With the addition of The Lodge at Riverside, a three-story, 24-room boutique hotel in Grants Pass, Travel Southern Oregon Interim Executive Director Kerrie Walters said visitors will benefit from a wider selection of rooms. "More diversity in the type of lodging offerings is helpful for everyone," Walters said. "It provides the industry with more options and healthy competition, which is always a good thing." New units can ease the peak pressure that comes when large athletic tournaments or other events occur in the Rogue Valley. "There are certain times, like around Memorial Day, when Medford and Grants Pass are full and we're pushing people to either side of us," Walters said. "This will certainly help when we hit our capacity."  — Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter @GregMTBusiness.