Downtown St. Augustine's tallest building approved for five-star hotel conversion with Chamber support

The St. Augustine City Commission voted 5-0 Monday night to approve plans for The Exchange, a five-star hotel in the heart of downtown St. Augustine. The St. Johns County Chamber of Commerce spoke in support, calling the project a smart investment in the city's economic future.

Local hotelier Kanti Patel and Jalaram Hotels will convert the Treasury on the Plaza — the tallest building in downtown St. Augustine — into a 120-room luxury hotel. The project completed a two-year approval process that included sign-off from the Historic Architectural Review Board, ensuring the conversion is consistent with the historic look and feel of downtown St. Augustine.

Chamber President and CEO Isabelle Renault told commissioners the project is a meaningful investment in the local economy.

"This project fits a smart tourism strategy," Renault said. "It helps attract high-end clientele that typically spends more, supports local businesses and generates greater bed tax revenue while placing less strain on infrastructure and public resources than higher-volume tourism models."

Renault cited the project's economic footprint: 40 full-time and 20 part-time jobs, an estimated $50 million in tax revenue over time, 30,000 square feet of retail space and a 300-seat banquet hall for meetings, weddings and events. The valet parking garage will include more than 150 spaces, reducing pressure on surrounding public parking.

"It generates an economic return without depending on high-volume tourism," Renault said.

The developer has also committed to installing pavers along Charlotte Street at its own expense, which Renault called a meaningful public-facing improvement.

"This is the kind of opportunity we should embrace," Renault said. "Strong economic return in a way that is sustainable to our community."

The project is estimated to generate approximately $1 million annually in tourist development tax revenue paid entirely by visitors.