A contemporary, midscale hotel brand that hopes to bring nearly 150 additional hotel rooms to downtown Decatur is a step closer to reality. 

Developers Dream Capital Management and Five Star Group on Friday closed on the purchase of a property at 701 Church St. where an AC Hotels by Marriott infill project is planned, according to deal broker Michael Wess, a Bull Realty partner. 

The purchase price wasn’t disclosed. 

The AC Hotels project marks the second hotel proposal for downtown Decatur in recent years that would tap into existing parking instead of building more space for guest vehicles. 

The latest hotel plans call for replacing a one-story structure at 701 Church St., about two blocks north of Decatur Square, that was most recently home to Decatur Strength and Conditioning, a gym that has closed.

A revised rendering for the AC Hotels proposal in the 700 block of Church Street in Decatur. Courtesy of Dream Capital Management, Five Star Group

Ankit Govan, managing principal and cofounder of the development group, tells Urbanize Atlanta that pre-construction planning is now advancing, with an estimated hotel delivery in late 2027 or early 2028. 

“While we’re not in a position to announce a firm groundbreaking date,” Govan wrote via email, “our goal is to commence construction later this year, subject to final development milestones.”

Current plans call for a six-story structure with 148 hotel rooms—or four more than the initial proposal. 

The 81,000-square-foot building would be topped with a restaurant and terrace on the roof, according to plans. 

The hotel's design calls for just 10 parking spaces on site. Developers in October were granted a special exception to the downtown district’s standard to increase allowable off-site parking from 80 percent to 92 percent. The site requires at least 108 parking spaces, per city commission filings. 

Developers plan to work out an arrangement with parking deck owners at 1037 Commerce Drive and 755 Commerce Drive to secure 100 parking spaces that will be served by valet once the hotel opens.  The valet service will be managed by “a reputable operator,” developers previously wrote in city filings. 

Looking south toward Decatur Square, the former fitness center on the Church Street site, as seen in 2024. Google Maps

The project’s architect, BCA Studios, is the same firm behind a dual-branded Hilton concept that came to light in summer 2023 on the opposite side of downtown Decatur. That Tempo/Homewood Suites proposal at 213 Swanton Way calls for using valet and parking spaces in underused garages nearby, creating no additional parking facilities. 

Hilton hasn’t responded to inquiries about the status of the 213 Swanton Way project. It has yet to break ground but hasn’t been shelved, sources with knowledge of the project said last fall. 

Find more context and imagery for the AC Hotels proposal in the gallery above. 

Overview of the 701 Church St. property in the context of downtown Decatur. Google Maps

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