A proposed downtown Medford hotel is yet another sign that more hotels are in the city’s future.

In the works are two hotels near Barnett Road, a third near the Medford airport and a fourth near Lithia Motors headquarters in the downtown that is proposed as a 123-room Element by Westin.

After four years of negotiations, the Medford Urban Renewal Agency and developer Western Hospitality LLC reached an agreement March 21 to move forward with the Element project, which could open in the downtown by 2027.

Together, the four hotels would add 481 rooms to the current 2,636 rooms available at Medford hotels, representing an 18% increase.

Other hotel projects are also being considered, though specifics haven’t been presented yet.

“People sometimes say, ‘Wow, all these hotels. Is there room for more?’” said Colleen Padilla, executive director of Southern Oregon Regional Economic Development Inc.

Padilla and other local travel and business experts say there is sufficient demand and sufficient regional attractions to justify the interest in new hotels.

Before investing millions in a hotel, companies conduct their own economic feasibility studies to gauge demand.

“They deem that there is room in the market,” Padilla said.

The proliferation of new hotels has been offset by older hotels that have gone out of business, such as the 164-room Ramada Inn, the 118-room Inn at the Commons and the 47-room Redwood Inn. Some of the older hotels were repurposed into apartments for Almeda Fire survivors, low-income health-care patients or the homeless.

The shifting landscape of the hotel industry means the 2,636 rooms available at 39 hotels as of February in Medford are slightly less than the 2,658 rooms in February 2020, according to data provided by Travel Medford, based on information compiled by Smith Travel Report.

Since July 2020, SOREDI has had nine new hotels that have applied to be part of the region’s enterprise zone, which provides a three-year tax break for new investment as long as at least 10% of the jobs created are new jobs.

If all the enterprise-zone hotels get built, it would represent a $132,500,000 investment and add a combined 893 rooms.

Of the nine new hotels in the enterprise zone, seven are located in Medford. The hotels in other cities include the eight-room Eagle Point Chalets and the 101-room Hampton Inn in Grants Pass.

According to SOREDI, the Medford hotels that have been built since July 2020 and are participating in the enterprise zone include the 91-room Holiday Inn Express, the 111-room Compass by Margaritaville, the 92-room Marriott Fairfield Inn and the 132-room Springhill Suites. These hotels are located near the south Medford Interstate 5 interchange, except for the Springhill Suites located near the airport. There is another Springhill Suites located near the south Medford interchange built in the early 2000s.

Enterprise zone hotels that haven’t started construction include the 122-room Woodsprings Hotel and the 114-room Everhome Hotel, both of which would be located around Barnett Road near the WinCo Shopping Center on land formerly used for the old south Medford Interstate 5 interchange. A 122-room Hilton Homes is also planned near the Medford airport.

Developers of the proposed downtown hotel, a 123-room Element by Westin, have not yet submitted an application to be in the enterprise zone.

Not every hotel submits an application to be in the enterprise zone, such as the 85-room My Place Hotel near the Medford airport, which opened in 2021.

Hoteliers are eyeing the Medford area for several reasons.

Medford now has two large sports parks, the Lithia Driveway & Fields ballfields at the south end and, at the north end, the Rogue X sports complex with two indoor pools and a large event space. In the first two months of operation in January and February, Rogue X attracted 17,000 visitors.

“There’s a lot of growth and development opportunities because of tourism,” said T.J. Holmes, senior vice president of Travel Medford.

He said Medford is the gateway to Crater Lake, which attracts international tourists and people from throughout the U.S.

Holmes cited a visitor survey by Travel Lens, based on Google Maps reviews, that deemed Crater Lake National Park the “most beautiful” of all national parks in 2023.

Crater Lake is just one of the many outdoor recreational opportunities that are relatively close to the Medford area.

The wine industry, including four local “wine trails,” is also a strong tourist draw, along with the local entertainment and culinary scene.

Holmes said the Craterian Theater and the upcoming reopening of the 1,000-plus-seat Holly Theatre will help establish downtown Medford as a performing arts center.

Medford’s expanding health-care industry and corporations such as Lithia Driveway & Fields help bring in a steady stream of business travelers, Holmes said.

One missing piece that would provide a solid foundation in the local economy is developing a conference room space in the city, something that was lost when Inn at the Commons ceased to be a hotel, he said.

Holmes said an ongoing feasibility study will help determine if a conference space is warranted.

Having a regional airport is also a plus, and efforts are underway to expand the terminal at the Medford airport.

“There is a lot of potential for growth in Medford,” Holmes said.