Missoula Closes Sale for New Riverfront Hotel and Public Plaza

Missoula, MT (KGVO-AM News) - On May 29, 2026, the City of Missoula closed on the sale of about two acres of City-owned land at the corner of Orange and Front streets to Averill Hospitality.

“More than three decades have passed since the City became the owner of this site,” Mayor Andrea Davis said. “After years of effort, we are thrilled to see the private sector create a new destination in the heart of Missoula and to add an important new element to our riverside parks and trails system.”

According to the City, Averill Hospitality purchased the property for $4 million. The sale, in combination with a voluntary contribution from Averill, is expected to generate $7 million for the City’s Affordable Housing Trust Fund over time. City officials expect a first contribution of more than $350,000 to the Trust Fund by September.

Get our free mobile app

Exciting New Developments on the Riverfront

The Whitefish-based Averill group plans a riverfront hotel with 180 rooms, 15,000 square feet of conference and event space, a parking facility, new trail connectivity, and a public riverfront plaza. Some of the land purchase proceeds, in addition to Tax Increment Financing (TIF) from the Missoula Redevelopment Agency (MRA), will help build utilities, street improvements, sidewalks, curbs, and plant street trees.

The City said the project supports key community goals of enhancing pedestrian and trail connectivity along the Clark Fork River and across critical intersections; supporting the Front/Main Street two-way conversion and improving traffic flow; supporting the Affordable Housing Trust Fund; and generating new tax increment to catalyze broader redevelopment in the area.

Averill Hospitality also owns the Lodge at Whitefish Lake, the Whitefish Riverfront Hotel, the Edgewater Missoula (formerly the Doubletree), and the newly acquired Holiday Inn Missoula Downtown.

The Riverfront Triangle property, just west of the Orange Street bridge, has a storied history. In 1895, it was the community garbage dump. In 1920, it was designated as a landfill. The 1930s saw a gas station constructed at the corner, and the Orange Street bridge went up in 1935. The Fox Theater – for years the property’s namesake – opened in 1949 and was donated to the City in 1984. Through the 1990s, the City solicited proposals in four nationally advertised efforts for the development of the property without success. In 2007, the City created the Riverfront Triangle Urban Renewal District and continued to seek proposals.

The design phase will likely last about one year, followed by construction.

“I give heartfelt thanks to former MRA staff member Chris Behan, who carried this project for more than 30 years for the MRA,” MRA director Ellen Buchanan said. “This important milestone will begin the process of expanding the downtown to the west across Orange Street and will be a catalyst for redevelopment of this underutilized land located between the Clark Fork River and Broadway.”

Visit the Engage Missoula page to learn more about the project. Visit Averill Hospitality here.