Proposed Appellation Hotel

2 and 10 Petaluma Boulevard South / 313 B Street (EKN Appellation Hotel)

This is the site of the thwarted EKN Appellation Hotel. The lot (3 parcels), which stood vacant for over 20 years, was proposed for development as an upscale 93-room boutique hotel, with a basement-level 57-seat restaurant and “speakeasy,” a 141-seat ground-floor restaurant, and a 105-seat restaurant/lounge on the fourth floor. It was anticipated that the restaurants would be designed by award-winning chef Charlie Palmer who was one of the project sponsors. See a description of the project here.

Development of a hotel on this site was controversial, and prompted a group of Petaluma residents to file a lawsuit against the City and seek to put a referendum measure on the ballot to overturn the City’s decision to create a zoning overlay that would have accommodated a larger hotel. Eventually the developers submitted a new proposal for a smaller hotel (56 rooms) which resolved the dispute.

That revised proposal was approved by the City with certain design conditions. However, before any construction started, the developers informed the City that the smaller hotel would not pencil. (Charlie Palmer was originally quoted as saying 82 rooms were required for the project to be financially feasible.) They sought to share the anticipated Transient Occupancy Tax with the City to ensure the smaller project was financially viable, and the City was amenable to researching a split. Ultimately, though, in September 2026 the developers called it quits and advised the City that they were withdrawing their proposal.

These three vacant parcels are considered brownfields, since the land was formerly used as a gas station. With no development on them, these parcels currently bring in only $1,859 a year for the City in taxes and create no economic, cultural, or social benefit for the City. The developers originally estimated that, between the sales tax, property tax, and Transient Occupancy Tax (TOT), the project would have brought in over $90 million in tax dollars for the City over 30 years. In addition, the developers anticipated creating 133 permanent jobs and generating $15.7 million annually in economic activity from the hotel’s activity. During the design and construction phases alone, they estimated the project would create 224 jobs and generate $38.6 million in economic output. Significantly, they predicted that the hotel project would lead to more than 1.7% in growth across industries, particularly in the hospitality sector. See the full Economic Impact Study here.

Now, none of that revenue will be realized by the community, and the empty lot remains an empty lot. 

Rumor has it the property is for sale, but we could find no listing as of this update (October 18, 2026.)