Beechwood’s $137.4M hotel project getting IDA assist | Long Island Business News

A project that would bring a 299-room hotel to a Melville industrial site has received preliminary approval for economic incentives from the Suffolk County Industrial Development Agency. 

Jericho-based Beechwood Organization is planning to build a four story, 402,450-square-foot extended-stay hotel that will replace an existing industrial building on 10.3 acres at 125 Spagnoli Road. 

Called The Ferncliff Hotel, the $137.4 million project will have studio, one-, two-, and three-bedroom units, which will be available for overnight, weekly, monthly or a longer-term stay, according to an IDA statement. Amenities at the hotel will include two interior courtyards, fitness center, swimming pools with surrounding patios, restaurant, bar, dog park, grilling stations and a rooftop patio. 

Developers expect that the hotel will attract long-term stay guests, corporate travelers, snowbirds, conference and leisure visitors to the Melville, Huntington and Babylon areas. 

“We’re excited for the opportunity to create The Ferncliff Hotel, which will satisfy the growing need for extended-stay accommodations in the region,” Steven Dubb, a Beechwood principal, said in the statement. “Without the IDA’s support of this project, it simply could not happen. We’re confident based on our experience in the hotel market, and the studies that have been completed for this project, that this hotel will be an economic generator for the county for decades to come.” 

While the IDA tax breaks for the project come to more than $10 million, the IDA says the development will generate more in taxes and contribute more to the local economy than the current industrial property, which generates almost $300,000 a year in property taxes. In the first year of its agreement with the Suffolk IDA, the property will generate more than $504,000 and over the course of the IDA’s 15-year agreement, nearly $12 million in property taxes will be collected, according to the statement. The project, which will create 22 jobs, is expected to provide a net public benefit of more than $18 million, based on a cost-benefit analysis by Grow America. 

“Unlike other hotels in the area, what The Ferncliff has proposed satisfies an accommodation need in the area that has growing demand for all types of travelers,” Kelly Murphy, acting executive director of the Suffolk IDA, said in the statement. “What they’re creating will establish a home away from home for individuals traveling to our region, whether for business or leisure. This extended stay concept, along with its unparalleled amenities and strategic location, is poised to be a significant destination for travelers.” 

The Spagnoli Road property has been owned by Frelen Associates LLC and occupied by Poly Pak Industries, a packaging manufacturer, which plans to relocate its operations off Long Island, according to published reports. 

The Ferncliff Hotel is expected to open in the summer of 2027.