New Water Street Hotel Is Coming Together Six Months In

Back in February of this year, I told you about Water Street being closed for a big building project. Since then, the road has been open, and the project is coming along quickly.

New Hotel In New Paltz Making Progress on Water Street

I have the opportunity to be in the area of Water Street often, so it has been both interesting and remarkable to watch as the new building comes together. Up until this project, the site was an old barn that housed a drum store, a glass shop, and more. Soon, it will be a new 28-room hotel.

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Talk of this hotel has been going on for years. People who live and work in and around the area have been watching with both caution and anticipation. In a recent development, the Groovy Blueberry Build, which is located at 1 Water Street, has been put on the market for sale.

READ More: Groovy Blueberry Building Empty Again in Less Than A Year

Until a month or so ago, it was home to the Weedery and a Farm Store. Before that, it was the Groovy Blueberry Headquarters for decades until it closed in 2023. No word on what might end up there, but in the meantime, the New Paltz Way Hotel is making progress towards completion. The rendering of the new hotel is below, courtesy of Hoover Architecture.

This 28-room hotel will feature a self-led wellness center, coffee bar, and nature-focused amenities, including bike rentals and a living roof, all thoughtfully designed to enhance the charm of New Paltz’s Water Street Market Shopping District on the banks of the Wallkill River. (Ulster Strong via Facebook)

People who live in New Paltz are aware that the property on Water Street that was originally part of the old lumber yard that was torn down decades ago to make way for Water Street Market has been scheduled for an upgrade. Now you can see what has been discussed coming to life.

According to Ulster Strong on February 19th, 2025, the Ulster County IDA Board unanimously approved incentives for a boutique hotel to open at 11 Water Street. The plan is to have the hotel blend into the scenery, which includes the Wallkill Valley Rail Trail.

Next time you are in New Paltz, venture to Water Street Market to get a good view of the latest developments with the hotel.

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