Granada Hotel in downtown SLO plans to add 23 rooms

Granada Hotel & Bistro in downtown San Luis Obispo.
Granada Hotel & Bistro in downtown San Luis Obispo.

The owners of the Granada Hotel & Bistro are hoping to add 23 guest rooms to the downtown San Luis Obispo boutique hotel.

A proposed 9,871-square-foot, four-story addition would nearly double the size of the property, which currently houses 17 guest rooms and a restaurant/bar in a 10,877-square-foot building at 1126 Morro St.

“Our business model and vision has always been to own and operate a world-class boutique hotel that is uniquely San Luis Obispo,” hotel co-owner Kimberly Walker said. “I’m really looking forward to adding more four-star boutique rooms to downtown.”

The four partners of Lunacy Club LLC submitted an application for a conceptual architectural review of the project, which was discussed at an Architectural Review Commission meeting in February and continued to an uncertain date.

Walker and her partners are now working on final design plans to take back to the Cultural Heritage Committee before returning to ARC for final design approval.

The proposal includes a four-story, detached building with a roof terrace constructed on what is now a parking lot behind the existing hotel. Other amenities, including a 24-hour front desk and gardens, are also planned.

“We’ve really worked with the community to make sure we had a design that worked with the scope and design of downtown,” she said.

No onsite parking is proposed, but valet parking would be offered.

The hotel owners can pay in-lieu fees to the city instead of providing parking spaces because the hotel is located within the commercial downtown zone, according to a city staff report on the project.

The project cost was not available, Walker said, since building materials and design costs have not been confirmed.

The Hotel Granada was built in 1922 and operated as a hotel until the early 1960s, and was later used for apartments, Walker said.

She declined to share details of the hotel’s occupancy levels.

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