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Mayo plans $190M building expansion, including hotel, in Rochester

September 18, 2018

Mayo Clinic is spending $190 million to expand a structure in Rochester called the Gonda Building, which serves as the front door to the health care systems largest campus.

The project would add four floors worth of space for caregivers in the building, plus a 7-story hotel developed through a joint venture between Mayo and a company based in Singapore called Pontiac Land Group.

When the project is complete in 2022, the Gonda Building would stand 32-stories in height. Earlier this month, Mayo announced a $648 million expansion for its medical center in Arizona plus $144 million worth of capital projects at its hospital in Jacksonville, Fla.

We are in dire need of additional clinical space, said Dr. C. Michel Harper Jr., executive dean of practice at Mayo Clinic. This allows us to announce a strategic collaboration ... so that we can have four additional floors on top of our existing Gonda Building and integrate that with seven floors of hospitality hotel space a premier hotel space.

The Gonda Building features a large atrium where patients often start their visit to the Mayo Clinic, plus outpatient clinics, surgery centers and some space that is technically regarded as hospital space (even tough the building is not a hospital).

The additional four floors of clinical space would span about 200,000 square feet, and would be used for cancer patients and outpatient procedures. Thats more than 10 percent of the 1.5 million square feet overall in the Gonda Building, which was the biggest construction project in Mayo Clinics history when it was completed in 2001.

Preliminary plans call for construction on the Gonda expansion to begin by the end of 2019 or early 2020, which completion by the end of 2022.

While the joint venture will own the hotel, it will be operated by a major hotel group to be named later, officials said. Pontiac Land Group will develop the hotel space, which would include around 200 rooms. Thats a small percentage of the roughly 6,000 hotel rooms in Rochester, said Jeffrey Bolton, the Mayo Clinics chief administrative officer.

We have heard from our patients the need for this type of hotel offering within the Rochester community, Bolton said. If you look around the country at our top academic medical center competitors, most of them located in large cities, there are premier hotels a number of them very close and in many cases on the campus of those other organizations. So, we feel this type of offering is really critical in our efforts to compete for domestic and international patients that are willing to travel to Mayo Clinic to receive their care.

Rochester and nearby operations in Iowa, Minnesota and Wisconsin generated by far the largest share of Mayo Clinics patient care service revenue during the first six months of the year at about $3.5 billion. The comparable figure in Arizona during the period was $755 million, and $630 million in Florida.

The operations in Arizona and Florida are becoming bigger parts of the whole, Bolton said, but Mayo continues to invest in facilities that will allow for growth in Rochester and the Midwest.

Christopher Snowbeck 612-673-4744 Twitter: @chrissnowbeck

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