The latest addition to Folsom’s skyline is quickly becoming reality as the new AC Hotel by Marriott at the Palladio continues to take shape, with the full frame of the five-story building now clearly visible from surrounding streets.

In just a few months, what was once a parking area has transformed into a towering structure that signals the next phase in the ongoing evolution of the Palladio. The hotel project, developed by Texas-based Insignia Hospitality Group Inc., represents the largest expansion to the center since it opened in 2010.

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Located on 1.5 acres that used to be parking near Dave & Buster’s, the five-story, 130-room AC Marriott hotel will be the only lodging option on Palladio grounds. The new hotel is expected to be complete and ready to open by spring of 2026.

Situated at the corner of Broadstone Parkway and Palladio Parkway, the AC Hotel will offer approximately 130 guest rooms, including eight executive suites, and a variety of upscale features aimed at both business and leisure travelers. Plans include a lobby and lounge, fitness center, breakfast area, and meeting spaces, with a design intended to blend into the Palladio’s established style, according to officials.

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The hotel is part of a long-envisioned plan for the shopping and entertainment destination. Its placement is expected to enhance the experience for visitors while meeting the growing demand for accommodations in the heart of Folsom.

With a footprint of over 85,000 square feet, the hotel replaces 218 existing parking spots in the northwest section of the center, while incorporating 29 new designated spaces to support guest needs. The layout features a distinctive L-shape with a planned outdoor patio area.

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This will be the second AC Hotel in the greater Sacramento area, joining the brand’s downtown location. Known for their modern, minimalist design, AC Hotels originated in Spain in 1999 before joining the Marriott portfolio and expanding across the globe.

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