Another Hotel Slated for the Fast Growing MFR Airport Area

Kauri LLC currently operates two Hilton branded properties near the I5 Exit 27 interchange in S. Medford.

The Rogue Valley International-Medford Airport (MFR) announces Jackson County and Kauri, LLC have just finalized negotiations for a hotel to be constructed on airport property. It’s another big action from MFR as it continues to move forward with major projects amid a pandemic.

Conceptual image, designs are not finalized at this time.

The hotel will consist of at least 118 rooms and will be conveniently located on a 2.76-acre lot on the airport and within walking distance to the main terminal, said Jerry Brienza, airport director. The site is owned by Jackson County and it will be leased to the developer. 

The airport hired the consultant firm CBRE to help find the right tenant. CBRE helped put together a request for proposal, assisted with the search for interested developers, and supported the evaluation process. Kauri, LLC was selected and negotiations were soon underway with MFR to build the hotel. Kauri has applied for a Home2 Suites brand hotel by Hilton. According to Brienza, Kauri and MFR have been working on securing a lease and development agreement for over a year, dealing with issues such as FAA land releases, flood plain studies and a pandemic. “Both parties were very committed to this project and we worked together to move obstacles out of our way,” he said.

The lease and development agreement, in principle, gives Kauri three years to have substantial construction work completed on the project. It is estimated that a minimum of $15 million will be budgeted to build the facility, though total cost is expected to be more. Kent Angier, its president and CEO, states “We are very excited to work in collaboration with the Airport Authority on what will be our third hotel in the Medford market.”

Brienza said the hotel will be a great addition to the airport business community and its accessibility to the main terminal, downtown Medford and the interstate will make it highly desirable. It will also further encourage recreational travel to Medford and the surrounding areas. The hotel will create over 200 jobs, with 80 percent of employees being local individuals.

With the 2.76-acre lot set aside for the hotel, Brienza said the opportunity is ripe for further development activity — potentially creating a new hub for commerce that could attract a range of businesses: restaurant chains, boutiques, and entertainment.

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