Petaluma approves luxury hotel project despite local concerns

The four-story Appellation Petaluma hotel is expected to bring economic benefits but has faced pushback from residents worried about preserving the city's historic downtown.

Published on Feb. 25, 2026

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The Petaluma Historic and Cultural Preservation Committee has unanimously approved the revised design concept for the Appellation Petaluma hotel, a four-story boutique hotel project led by celebrated chef Charlie Palmer. The hotel is expected to generate millions in economic activity and create over 130 jobs, but has faced years of opposition from local residents who fear it will alter the historic downtown and lead to rising costs of living.

Why it matters

Petaluma's historic downtown has long been a point of pride for the community, and many residents are concerned that the new luxury hotel will disrupt the existing character of the area. The debate over the project highlights the tension between economic development and preserving a city's cultural identity.

The details

The Appellation Petaluma hotel is a 34,000-square-foot boutique hotel that will include a rooftop restaurant, an underground 'speakeasy', and a ground-level restaurant led by Palmer. The project was originally proposed as a six-story building, but was scaled down to four stories after facing significant local opposition. Despite the reduction in size, the hotel has continued to divide the community, with some residents arguing it will lead to a rise in the cost of living and allow for future dense development, while others see it as a positive step that will boost tourism and the local economy.

  • In 2022, Newport Beach real estate developer EKN Development submitted plans for a six-story Petaluma hotel with a $69 million price tag.
  • In 2025, the Petaluma City Council approved the project, allowing it to override previous zoning rules.
  • In February 2025, the approval was met with public outcry during a City Council meeting.
  • In 2026, EKN Development downsized the project to a four-story building, reducing the hotel's rooms from more than 90 to 56.
  • On February 25, 2026, the Petaluma Historic and Cultural Preservation Committee unanimously approved the revised design concept for the hotel.

The players

EKN Development

A real estate developer based in Newport Beach, California, that is working on the Appellation Petaluma hotel project.

Charlie Palmer

A celebrated chef whose hospitality group, Appellation Hotels, is behind the Appellation Petaluma hotel project.

Petaluma Historic Advocates

A local organization that previously opposed the six-level hotel plan and gained enough signatures to add a referendum on a future ballot that would suspend the zoning overlay.

Brian Oh

The director of community development for the city of Petaluma, who believes the hotel will be an economic boon for the city.

Lynn Woolsey

A former U.S. Representative who commented at a meeting last year that 'nobody wants this' in reference to the hotel project.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The Petaluma Historic Advocates are set to consider placing the referendum on the ballot in March, which could suspend the zoning overlay that allowed the hotel project to move forward.

The takeaway

The approval of the Appellation Petaluma hotel highlights the ongoing tension between economic development and preserving a city's historic character. While the hotel is expected to bring economic benefits, its construction has divided the Petaluma community, with some residents fearing it will alter the downtown's charm and lead to rising costs of living.