Developers address neighborhood frustrations over delayed Dream Hotel project

Developers of a long-delayed mixed-use resort project adjacent to the Palm Springs Convention Center met with neighbors Thursday to explain years of setbacks and outline their commitment to completing the stalled development.

Lauri Kibby and Eran Nornberg of Brookriver Hotels & Resorts addressed residents’ concerns about the 450 South Calle Alvarado project at a community meeting at the convention center.

The project, which has been in development since 2007 on a 7.8-acre site, will include a resort hotel and residential condominiums.

Kibby represents her investment company CDI Ventures while Brookriver Hotels & Resorts serves as the financial partner in the development, with both companies sharing ownership and decision-making authority on the project known as the Dream Hotel.

Kibby detailed a series of challenges that have delayed construction since the hotel foundation was completed in 2015, including a year-and-a-half lawsuit with the general contractor that was resolved in early 2020.

“Then we entered into the all the mess of COVID,” Nornberg said, explaining how the pandemic halted progress on the project.

When work resumed, the developers faced additional obstacles as tariffs increased material costs, ultimately resulting in a construction estimate that came in $80 million over budget at $330 million.

“The project did not make sense financially at $330 million,” Kibby said.

The development team has spent nearly a year working to reduce costs and has now brought the project back within budget, according to the developers.

Residents questioned why a groundbreaking ceremony was held a year ago if the project wasn’t ready to proceed.

“We were really believing that we are going to be able to get financing in order to complete the project,” Nornberg said, adding that the partnership has invested seven figures monthly into the development from their own sources.

The developers said they plan to submit revised plans to the city in the first quarter of 2026 and aim to begin construction by the end of the year, with a target opening of Christmas 2028.

Kibby acknowledged the skepticism surrounding the project, particularly given delays with other large developments in Palm Springs.

“We ourselves are also frustrated, not skeptical, and are very committed to making sure the project gets done,” Kibby said.

Nornberg, who travels from New York twice monthly to oversee the project, emphasized the partnership’s transparency.

“We are here to answer any questions. We are not hiding,” Nornberg said. “We understand your frustration. You are our partners in a way.”

The developers announced plans to hold monthly community meetings on the second Thursday of each month at 9 a.m. at the convention center and will soon launch a website at selenepalmsprings.com for residents to submit questions and receive updates.

The next public meeting at the convention center is planned for February.

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