St. Augustine's Treasury building, seen from the Bridge of Lions, is the tallest in the historic downtown's skyline, standing six stories tall. | Noah Hertz, Jacksonville Today
Published on April 14, 2026 at 12:20 pm
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Downtown St. Augustine’s tallest building is set to become a five-star hotel after unanimous approval by the City Commission on Monday night.
The Exchange bank building, or Treasury on the Plaza, first opened in 1927 as a bank and has operated for several years with event and commercial space. Once construction is complete, the new hotel will provide some 120 rooms and a parking garage with more than 150 spaces. The hotel will still include an area for events as well as around 30,000 square feet of commercial space.
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The valet-only parking garage won’t be restricted to just hotel guests and staff, but parking will cost money for the general public.
In an effort to promote mobility options other than cars, the hotel also will offer bicycle rentals and have a staging area for Uber and Lyft rideshare services.
The new hotel comes from local hotelier Kanti Patel, whose company Jalaram Hotels operates a number of other locations in St. Augustine, including the Hilton hotel along the downtown bayfront.
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Speaking as a consultant for the developer, former St. Augustine City Manager John Regan said approving the hotel is in the public interest because of the effect it will have on the local economy.
“A room in a five-star hotel generates three to four times more revenue per room than, say, a Marriott Courtyard or other hotels,” he said. “And all that money is taken and circulates in the economy.”
Taking sides on the hotel
Members of the business community rallied in favor of the project, including Susan Phillips, the CEO of the local visitors and conventions bureau.
She said that a luxury hotel brings the exact kind of guests that the local tourism bureau works hard to attract — and that those visitors will contribute substantially to bed tax that supports tourism efforts like Nights of Lights.
“These visitors stay longer, they spend more money, and they actively support our local businesses, restaurants and cultural assets,” Phillips said. “As noted by the business community, this is exactly the type of visitor that city leadership has consistently said we want to attract.”
While the majority of Monday night’s speakers supported the project, several spoke against it, including local resident Melinda Rakoncay.
While the developer plans to beautify nearby streets, Rakoncay argued that the building represents “faux history” placed right in the heart of St. Augustine’s historic district, “destroying” the city’s “historic authenticity.”
And while he ultimately voted in favor of it, City Commissioner Jim Springfield said bringing high roller tourists to town is a double-edged sword.
“The five star hotel is going to be a great thing,” he said. “It’s going to bring in all those people with all that money, but it’s going to drive out people like me, who live on a fixed income.”
Other city commissioners called the project “ambitious” and “a blessing” to downtown St. Augustine.
