MUSCATINE, Iowa – Muscatine will have a new hotel and new amenities with the building of a Hampton Inn.

The Hilton Hotels-owned chain will be building a 76-room hotel behind Culver’s, which is at 3604 University Drive in north Muscatine.

The property is operated by Hawkeye Hotels, based in Burlington. The Hampton Inn brand is owned by Hilton Hotels.

The location was chosen because it is close to other area hotels and motels, including the Holiday Inn, Super 8 and Fairfield Inn.

“Hotels in proximity perform better,” said Ravi Patel, vice president of finance and development for Hawkeye Hotels in Burlington. “They drive business for each other. There’s a Culver’s and other supporting services near there. It’s also on (U.S.)  Highway (61), which is a demand generator.”

Hawkeye Hotels has helped build hotels in Davenport, Burlington, Cedar Rapids and other locations across Iowa and the Midwest.

Patel, an officer with Hawkeye Hotels, said he expects construction to be done and the hotel ready to open in eight to nine months. So far, everything is on schedule.

The project cost is $4 million. The decision to add a Hampton Inn started 18 months ago. Mid-American Construction, based in Columbia, Mo., is building the hotel and broke ground two weeks ago.

Patel said that despite the recession and stringent regulations for banks and lending, hotels are still needed and being built.

“It is a lot more difficult for developers to get their financing,” Patel said, adding that his team is working with those still receiving funding.

Room rates are expected to be around $90, Patel said, similar to room rates in the other area hotels.

Patel said Muscatine’s need for a new hotel is great, as some of the current locations are aging.

“The Hilton team told us that Muscatine is under-supplied with quality hotel rooms,” Patel said. “A lot of corporate travelers are going to Davenport to stay because they don’t think anything can accommodate them in Muscatine.”

Patel said that will change with help from Hampton Inn.

A free continental breakfast, indoor pool and spa will attract business travelers and leisure travelers alike, he said. Free high-speed Internet, coffee and a 40-50 person meeting room is also available at the new hotel.

“It was definitely the best available location. It has its supporting services with the restaurants and retail,” Patel said. “We think other growth is going to come around as well.”