Dive Brief:

• The Mayo Clinic, along with its development partner, Singapore-based Pontiac Land Group, on Tuesday announced that it is planning a significant expansion of the Gonda Building on its Rochester, Minnesota, campus, which will see the addition of clinical space as well as "premier hospitality" facilities.
• The 11-floor addition will include four floors and 200,000 square feet of clinical space, toward which Mayo will put $190 million, and include an expansion of the Mayo Clinic Cancer Center and Outpatient Procedure Center. A joint venture of Pontiac and Mayo will develop the seven floors reserved for a hotel, which will be operated by a major hotelier and will be "a distinctive hospitality option and experience."
• Construction is scheduled to begin in late 2019 or early 2020, with the project scheduled for final completion by the end of 2022. The collaboration between Mayo and Pontiac, said Philip Kwee, Pontiac's chief operating officer, "will bring together two fields of complementary expertise: medicine and hospitality. Each partner will be able to leverage their individual expertise to enhance the patient and guest experience. 

Dive Insight:

This new construction project is part of Mayo's 20-year, $6 billion Destination Medical Center development. The Gonda project is located in the Center's Heart of the City district. Other districts within the DMC are Downtown Waterfront, Central Station, Saint Mary's Place UMR & Recreation Area and Discovery Square, where biomedical, research, education and technology interests will collaborate and innovate.  

There are approximately seven construction projects currently under construction at the Center, including One Discovery Square, which is being developed by Mortenson Construction. The project will include space for life science businesses, startups, retail, hotel, commercial development and residences.  

Mayo recently announced two other expansions, one at its clinic in Phoenix and another at its Jacksonville, Florida, complex. The $648 million project in Arizona will nearly double the square footage of the current facility during a five-year period and add almost 100 additional beds. The healthcare provider will build a new patient tower, a three-story addition to another building and a three-story facility that will provide emergency and other services.

At its Jacksonville campus, Mayo will invest $144 million in a 120,000-square-foot, five-story building that will provide up to eight operating rooms and host other departments as well. The clinic will also add a 1,000-space parking structure that will feature 25,000 square feet of retail space.