What zoning classifications allow for hotel or extended-stay development on the target parcel?

Hello LandBank

Zoning classifications that allow hotel or extended-stay development on a parcel depend on local land use codes, but there are several common zoning categories and overlays that typically accommodate hospitality uses, either by-right or with a conditional use permit (CUP). Understanding these classifications is critical for assessing the parcel’s development potential, entitlement path, and alignment with community plans.

1. Commercial General (C-2, CG, GC)

  • One of the most common zones where hotels and extended-stay projects are permitted by right or with minimal approvals.
  • Intended for a wide range of commercial uses, including lodging, retail, and dining.
  • Suitable for mid-scale hotels, business-class brands, and extended-stay chains that benefit from retail and arterial road proximity.
  • Often includes development standards such as minimum lot size, FAR (floor area ratio), and height restrictions.
  • May require a CUP if near residential areas or within view-sensitive zones.

2. Mixed-Use (MU, MX, CMU)

  • Designed to integrate hospitality, residential, and commercial uses, making it ideal for urban hotels or live-work lodging formats.
  • Supports vertical mixed-use (e.g., hotel over retail or restaurant) or horizontal integration on larger parcels.
  • Extended-stay developments often align with workforce housing goals or business travel infrastructure.
  • Bonus height, density, or parking reductions may apply if aligned with TOD (transit-oriented development) policies.
  • Site plan review and architectural compatibility are often required in this zone.

3. Central Business District (CBD or Downtown Core)

  • Frequently allows boutique hotels, lifestyle brands, and extended-stay hotels within high-density urban environments.
  • Encourages walkable, transit-served hospitality that supports downtown revitalization and tourism.
  • Often offers relaxed parking requirements or incentivizes ground-floor activation with retail or lobby space.
  • Overlay districts in CBD zones may impose additional design review or building form restrictions.
  • Suitable for projects seeking proximity to office, convention, or entertainment zones.

4. Highway Commercial or Regional Commercial (CH, RC, CR)

  • These zones allow for limited-service and highway-oriented hotel models, including economy, midscale, or express brands.
  • Typically located near major highways, interchanges, or regional retail centers, supporting drive-by and destination lodging.
  • May support surface parking-heavy site plans and signage visibility allowances.
  • Extended-stay or corporate lodging brands are often compatible with this zoning when paired with low-density surroundings.
  • Design controls may apply for signage, buffering, or façade articulation.

5. Planned Unit Development (PUD, PD)

  • Offers maximum flexibility when the underlying zoning does not permit hotels outright.
  • Developers submit a custom master plan showing hotel placement, density, amenities, and use integration.
  • Useful when blending hotel use with residential, commercial, or civic features on large or irregular parcels.
  • PUDs may require public hearings and planning commission approval, but enable negotiated entitlements.
  • Common in areas with land assemblies, redevelopment zones, or institutional partnerships.

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