Hotel returns in United's latest Gateway tower plan.

Byline: William Morris

Three months ago,United Properties executivesweren't sure a new hotel would be feasible in downtown Minneapolis,where about 1,700 rooms have been built since 2012.

Now, the developer is betting the demand will be there for a 280-room five-star hotel within its proposed Gatewaytower.

Minneapolis-based United Properties has submitted a new plan dominated by office space and hotel rooms for the $330 million Gateway project at 30 S. Third St. The project has gone through multiple redesigns, and in August, United pitched a 30-story tower composed almost entirely of office space, dropping proposals for a Four Seasons hotel, apartments and condominiums.

But the latest plan, unveiled in city Planning Commission documents Wednesday, has grown to 35 floors, including a 280-room five-star hotel. United had previously been in talks with Four Seasons and another unidentified hotel operator for the site, and it is not clear who will operate the hotel planned in the latest design.

United spokesperson Sheila Thelemann said in an email the final design is still flexible and could be between 30 and 35 floors. She declined to comment further beyond what was outlined on the Planning Commission agenda. Four Seasons could not be reached for comment.

The full proposal includes 16 floors with 532,340 square feet of Class A office space with the bulk of it going to RBC Wealth Management; four floors with 22 apartments or condominiums; and a four-floor podium with lobbies, meeting rooms and 9,100 square feet retail space.

The tower will offer 455 parking spaces in an underground ramp, and skyway connections to the Minneapolis Central Library and Marquette Plaza.

RBC Wealth Management has signed a 310,000-square-foot lease in the new building, which it expects to occupy in 2021. United officials had previously pointed to that timeline as another reason to drop the planned hotel, citing concern it might delay the process of securing approvals from the city.

Demand has been strong in the downtown hotel market, but Gateway is far from the only hotel project in the pipeline, said Steve Sherf, president of the Excelsior-based Hospitality Consulting Group.

"It's as healthy as it's ever been from a...