Long-awaited Dream Hotel project back underway after ground breaking Tuesday

City officials and developers celebrated the ceremonial groundbreaking of the Dream Hotel project Tuesday, marking a significant milestone for a development that has been in the works since 2007. The luxury resort, slated to open in 2027, will add 155 hotel rooms and 89 condos and townhomes to the city’s downtown area.

Mayor Jeffrey Bernstein, joined by Mayor Pro Tem Ron deHarte, Councilmember Lisa Middleton, and City Manager Scott Stiles, presided over the ceremony at the future site of the hotel, which currently contains some infrastructure but has sat untouched for years.

“This ribbon cutting is the first step towards making that a reality and proof that when a project like these are a lot of hard work, may take time and may have to clear some obstacles like a pandemic, they are worth pursuing,” Bernstein said.

The Dream Hotel project faced numerous hurdles, including delays caused by the COVID-19 pandemic and concerns from neighboring residents that needed to be addressed. Despite these potential setbacks, the development team, led by Lauri Kibby, remained committed to the project.

“It is a long history that I have been working on this project,” Kibby said. “The growth and improvement that have happened over these years is amazing and we hope to be the star of that development.”

The hotel is expected to enhance Palm Springs’ downtown area, contributing to the city’s vision of a walkable, vibrant urban core. Bernstein envisions the entire area from Tachevah to Avenida Caballeros to Palm Canyon becoming a cohesive, pedestrian-friendly district.

“The Dream Hotel is destined to become one of the premier properties in Palm Springs,” Bernstein said. “As someone reminded me recently, a rising tide lifts all boats. The Dream Hotel will … lift the entire Palm Springs hospitality offerings to a new level.”

City officials emphasized the economic benefits of the project, including job creation during construction and long-term employment opportunities once the hotel opens.

“This has been a project long in coming and it certainly has been worth fighting for,” deHarte said. “It gives our convention center guests one more opportunity for a place to stay. But it also is going to be creating more good paying jobs, not just during the construction phase, but for the long term after the doors open on this property.”

Middleton, who has been involved with the project since her time on the Palm Springs Planning Commission in 2014, praised the development team’s perseverance.

“I want to give an incredible shout out to Lauri Kibby and to all of her team for sticking with this through some good days and through some really hard and difficult nights,” Middleton said.

City Manager Scott Stiles acknowledged the collaborative effort between the city and developers to bring the project to fruition.

“Today may be symbolic, but it’s really much more than that. Today is the first day towards building something lasting and meaningful that will add to the beauty of our city,” Stiles said.

“It’s very exciting for the entire city, and, most importantly, for the residents that live around this property that have been patiently waiting for this construction to finally come to an end,” deHarte said after the ceremony. “Well, now there’s light at the end of the tunnel, and we’re going to see a wonderful new addition to the city of Palm Springs. 

“I’m excited that our residents can now finally have a sense of peace and closure that will come along with the finalization of the construction.”

The Dream Hotel is part of a broader wave of development in Palm Springs. Bernstein noted that 2024 has seen the launch or completion of several long-planned projects, including affordable housing units, the Navigation Center, and the groundbreaking of the College of the Desert Palm Springs campus.

“You’ve dared to dream big,” Stiles said to Kibby and her team, “and I wish this project all the success in the world.”

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