ORANGE BEACH, Ala. — Innisfree Hotels, Inc. Balmaquien Hospitality, LLC, an Innisfree affiliate, has closed a $31 million loan for the acquisition of a 2.6-acre site and construction of a nine-story, 160-room beachfront hotel in Orange Beach.

The site is located directly across from the Shoppes at Palm Pointe and will feature garage parking, a pool bar and dune walk-over. Additional amenities include a second floor fitness center with Gulf of Mexico views, 5000 square feet of gulf front meeting space and an indoor pool.

Innisfree is in the process of selecting a general contractor and franchise for the hotel, and an announcement is expected in the next few weeks.  

In 1987 Julian MacQueen, founder and chief executive officer of Innisfree Hotels, built the first hotel in Orange Beach, a 94-room Days Inn.

He currently owns two Orange Beach hotels — Holiday Inn Express and Hilton Garden Inn.

MacQueen also developed three condominium projects in the area and owns the Hilton Pensacola Beach Gulf Front and Hampton Inn on Pensacola Beach.

“I’m thrilled for the opportunity to work with Bank Trust and the city of Orange Beach to develop an exciting new hotel in this area. With the ongoing success of our existing Orange Beach hotels we know the market is ready for the new property,” MacQueen said.

Orange Beach Mayor Tony Kennon believes that the new development is a positive indicator for the city.

“The Innisfree hotel site sits on a parcel of land that was already zoned for high density condominium development on the beachfront. The addition of a new hotel project fills a niche in our community and definitely fits a need that currently exists. We would rather have a flagged hotel on this site instead of a condominium project.

“The allowable density of that particular section of the beach, near the intersection of Alabama Highway 161, has always been zoned for condominium density. The direct proximity to the retail center at Palm Pointe on the north side of the highway is a major consideration on the project, as hotel rooms and meeting space fit well with the retail mix and they potentially complement each other,”Kennon said.

The economic impact to the Orange Beach area is anticipated to be significant.

It is expected that the project will require more than 20 subcontractors and 400 tradesmen for the construction of the hotel.

According to Dr. Rick Harper, director of the Haas Center for Business Research and Economic Development, the economic impact to the community from the construction work alone will likely be in excess of $30 million.

After its completion in early 2011, the hotel will employ more than 75 people. The hotel will add another 5000 square feet of meeting space to the beach’s current inventory which is also expected to help bring additional business to Orange Beach.

Innisfree began construction of a 206-room Holiday Inn on Pensacola Beach last month and will start construction for the Orange Beach hotel in November 2009.