Photo by Jon Anderson
The former Days Inn site at 1485 Montgomery Highway in Vestavia Hills, Alabama, is still being eyed for redevelopment for a newer hotel and/or restaurant and retail options as of March 2026. A developer working with the city is trying to pair it with adjacent land that includes this law office and a gas station.
A third opportunity for a new hotel on U.S. 31 near Interstate 65 in Vestavia Hills has emerged, City Manager Jeff Downes informed the Vestavia Hills City Council recently.
There actually are two prospects eyeing land that includes the former site of the Days Inn hotel that the city bought in 2022 and demolished in 2023 at 1485 Montgomery Highway, Downes said. One of those is a hotel operator, and the other is more retail-oriented, he said.
“There is active conversation going on right now,” Downes said. “I’m not holding my breath on anything, but we’re working through that, and we have a lot of data that shows this can be a viable hotel site and a viable retail site.”
Two potential well-known hotel brands and well-known hotel developers previously looked at this site and determined it to be a good opportunity, and the hotel brands even approved the “hotel flags” that were part of the proposal, Downes said.
“The operators were chosen and found that it could be run in a profitable manner, but then it always boiled down to the development group,” Downes said. “Even with any kind of incentive purchase price, the first two hotel options did not cross the finish line.”
There have been numerous opportunities for retail options, but the City Council encouraged him to be patient and discerning, he said.
“We want what is the right thing for Vestavia Hills, even if it stands in its current condition for a little bit longer, so that we can have the biggest impact to our gateway,” Downes said.
Regarding the current hotel option, the proposal on the table now is for a 150-room hotel instead of a 120-room hotel that had been considered in the feasibility study, Downes said. Interest rates, construction costs and the cost of the land are all variables that play into the conversation, he said.
“It’s all a math equation. It’s all part of an exercise,” Downes said. “Where there’s a will, there’s a way. The demographics, the income levels, the traffic volumes — all of those are a positive thing. Ultimately, we’re going to find the right user. We just need patience.”
In the meantime, the city and its contractor, Gillespie Construction, are actively working on a $1.2 million gateway improvement project at the intersection of Interstate 65, U.S. 31 and Columbiana Road. It includes two new signs welcoming travelers to Vestavia Hills, improved landscaping, stormwater improvements and a retaining wall that will help improve development opportunities for the site of the former Issis and Sons Furniture Gallery store that relocated to Pelham.
The city used $4.5 million of federal grant money from the American Rescue Plan Act of 2021 to purchase and demolish the former Days Inn hotel and is working with a development partner to pair that 3.55-acre property with adjacent property for redevelopment. The adjacent property that has been considered includes the Issis and Sons land, a gasoline station owned by Moore Oil Co., a law office, a household goods dropoff point for a group that resells items to benefit veterans, and another office site.
Steve Issis has been a strong partner, even donating an easement for the city’s gateway project, and the leadership of Moore Oil Co. has been collaborative and committed to partner in the redevelopment project, Downes said. The other property owners thus far have been unrealistic regarding the value of their property, he said.
But Downes said he remains optimistic about redevelopment opportunities there. Even if a decision is made soon regarding the viability of this third hotel option, there’s still a lot of work that would have to be done to get the deal to come to fruition, he said. “It’s still a long process.”
