Today is July 7, 2026, and some exciting developments are taking shape at the Hilton Marco Island Resort and Spa. The owners of this beautiful locale have grand plans to more than double the number of guest rooms by constructing a second tower. Sounds thrilling, right? But there’s a bit of a catch. This expansion could exceed the allowed density in the city, as it is proposed to take place on just 10.5 acres of prime Marco Island real estate.
Olshan Properties from New York, the folks behind the original Hilton built in 1985, are requesting a rezoning to Planned Unit Development (PUD) from Resort Residential. This shift is necessary because the proposal aims to surpass both the height and units-per-acre limits set forth in Marco Island’s comprehensive plan. The city’s planning department, however, isn’t too keen on this idea and has recommended that the application be denied. Apparently, a change to the comprehensive plan would be needed to achieve the desired density of 60 units per acre and to bump up the guest rooms to a whopping 626.
Upcoming Planning Review
The city’s planning committee will take a closer look at the rezoning request this Friday, July 10, and will provide recommendations to the city council for final approval. The Hilton Marco Island currently boasts 310 guest rooms and is operated by Marco Beach Hotel Inc. If the plans go ahead, Olshan Properties intends to renovate the existing accommodations and amenities, add the second tower, a parking garage, and introduce new guest and public amenities. Exciting, but there’s no concrete site plan just yet.
Interestingly, the PUD process began in 2024 but was pulled back for a bit so they could refine the PUD language. The city administration notified the applicant that a comprehensive plan amendment is necessary to meet the proposed density. It seems like a bit of a hurdle, as the new development would exceed the approved density according to Policy 4.2.3, making it incompatible with the city’s existing plan.
What Does PUD Mean for Marco Island?
Diving deeper into what a PUD involves, we find that these developments are required to provide some open space, with specific minimums based on the type of PUD. For a residential-only PUD, 50% of the gross area must be open space. If it’s a mixed-use project, that number drops to 30%. And talking about redevelopment projects in the town center overlay, they need to set aside at least 20% for usable open space. This could mean parks, recreational areas, or other public uses that the city council deems necessary.
Usable open space, by the way, doesn’t include things like internal street rights-of-way or open water areas. So, if the council sees a public need, they might require certain areas to be dedicated for public facilities like parks or schools. And let’s not forget about impact fees! These can be credited based on the market value of land dedicated for public use, determined by an accredited appraiser. All of this keeps the city’s interests in mind while also allowing for development.
Historical Context
For a bit of context, the Hilton Marco Island underwent a significant $40 million renovation back in 2016. Unfortunately, it faced a setback in 2017 due to a fire that caused a million dollars in damage, forcing it to close for repairs. If the PUD application gets the green light, the next steps will involve finalizing the redesign and applying for permits at various governmental levels. Hotel representatives are optimistic and expect to kick off construction within 12 months of the PUD’s approval.
As the planning committee gears up for their review, the community watches closely. It’s an exciting time for Marco Island, with the potential for significant growth and transformation on the horizon. If you want to dive deeper into the details about the hotel construction and development trends, you might want to check out more information on hotel projects available at hotelbau.
There’s a lot to unpack here, and honestly, it’s hard not to feel a mix of excitement and caution. The development could bring in more tourists and boost the local economy, but it’s crucial to balance growth with the community’s needs and environmental considerations. So, keep an eye out, folks—this story is far from over!