Two more hotels being built on Elk Vale Road

By Scott Aust, Journal staff | Friday, January 09, 2009

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Exit 61 is becoming a mecca for hotels.

Two hotels are under construction on both sides of Elk Vale Road -- a 92-room Comfort Suites and an 80-room Sleep Inn and Suites. Both hotel brands are part of the Choice Hotel group of hotels but are owned by different entities.

Ron Heinis, a partner in Heinsel Investment LLC, said work began in the fall on the Comfort Suites on the west side of Elk Vale Road and should be finished by Aug. 1. The $10 million project will include a 4,000-square-foot convention center.

"They're putting up the fourth floor right now," Heinis said.

The site is a prime location for hotels, near major retail destinations including Rushmore Crossing and Cabela's and the proposed site of the West River higher education center.

"It's close to the interstate. It's on the bypass highway, right on the corner of that intersection. There's Cabela's out there, and two other hotels, and a third one that's being built, too," Heinis said.

In the future, the partners may build a restaurant on a pad in front of the hotel, but they haven't made a decision about what kind. Heinsel Investment also owns an additional five acres to the west but isn't sure how it will be used.

Chris Connelly, co-owner of the Sleep Inn and Suites along with his brother, Mark Connelly and mother, Beth Miller, said he hopes to have the four-story hotel open by June 1. The hotel is on the east side of Elk Vale Road and the south side of Cheyenne Boulevard near the McDonald's restaurant.

Connelly, who splits time between Rapid City and another business venture in California, said he has been amazed at how much activity has been happening at Exit 61 just in the year since he bought land for the hotel.

"I was just back about a month ago and thought, wow, I barely recognize it," he said. "It seems like a different place."

Connelly's family also owns and operates a hair salon and candy store in Rapid City, but this will be their first hotel. In addition to the roughly $6 million hotel, the family bought another 2.5-acre lot across Cheyenne Boulevard that could become a restaurant, strip mall or another hotel project.

The family prides itself on offering customers good service and clean businesses, Connelly said.

"Our other businesses are in line with that, and this was an industry that was attractive for that as well, because it brings something to the community," he said. "We're building it in a way that's as environmentally friendly, efficient and attractive as possible. We're hoping to add one more to our family of businesses that can be a positive for the community."

Contact Scott Aust at 394-8415 or scott.aust@rapidcityjournal.com