The City of Folsom Planning Department answers questions from community members about the new hotel project at the Palladio.

What large-scale construction project is taking place at the Palladio?

Construction has begun on the new AC Hotel by Marriott at Folsom’s Palladio shopping center, marking the largest expansion at the venue since its 2010 opening. Developed by Insignia Hospitality Group, the five-story hotel will feature 130 rooms, including executive suites, and amenities like a fitness center, meeting spaces, and a lounge. Designed to complement the Palladio’s European-inspired architecture, the 85,000+ square-foot hotel will replace a portion of existing parking space near Broadstone Parkway.

Tell us more about the planning behind this location.   

This site has long been planned for this type of use, consistent with the city’s General Plan and zoning, as well as the Palladio Planned Development Permit. The hotel proposal was carefully reviewed to ensure it aligns with the city’s planning standards and long-term vision for the area.

How will traffic and parking be managed?

A traffic impact study was required as part of the development review. The study assessed projected vehicle trips, peak-hour impacts, and circulation patterns. Based on the findings, roadway improvements and access points were designed to ensure traffic flows safely and efficiently. The hotel is also required to provide on-site parking to accommodate guests and staff without relying on nearby neighborhoods or public parking areas.

How does this project benefit the community?

Hotels bring local economic benefits, including transient occupancy tax (TOT) revenue that supports public services. Hotels also contribute to the local economy by supporting restaurants, retail, and tourism-related businesses.