Australian mall developer Westfield Group LLC will hold off on its plans to build a business hotel as part of its Village at Topanga development.
The 158-room hotel, which some had speculated would be flagged as a Hyatt, was to be constructed in the first phase of the 550,000-square-foot, $500 million project that connects the Westfield Topanga and Westfield Promenade malls.
Katy Dickey, a spokesperson for the developer, said the move was a business decision.
“It was concluded that current market conditions/demand for a hotel weren't adequate,” she said, in an email. “Therefore it was removed from the initial phase, but we reserved the right to pursue construction of a hotel in the future.”
Last summer, Westfield recieved approval for up to $59 million in tax breaks over the next 25 years,which the company said was necessary to fast track construction of the development. The project is expected to generate $140 million in tax revenue over that same period and add 1,600 jobs.
The other elements of the project are expected to be completed in the next three years and include a Costco, office buildings, restaurants and shops.