11-suite boutique hotel coming to downtown O’Fallon

Downtown O’Fallon is on track to get its own boutique hotel. The O’Fallon City Council approved a zoning change on Oct. 5 for The Schwarz on State, an 11-suite hotel planned for an existing two-story building at 114–128 W. State Street, at the northeast corner of West State and Cherry streets.

The project, led by local developer Chad Schwarz through Schwarz Properties LLC, would turn second-floor apartments and one first-floor commercial space into independently operated hotel suites. Rather than building new near the interstate, the plan puts overnight guests within walking distance of downtown O’Fallon’s restaurants, shops and the Vine Street Market.

Key details

• Project: The Schwarz on State, a boutique hotel and adaptive reuse
• Location: 114–128 W. State Street, O’Fallon, at West State and Cherry streets
• Developer: Schwarz Properties LLC
• Size: 11 proposed suites on a roughly 0.60-acre site
• Zoning: B-1 to B-1(P), Planned Community Business (city case PU-2026-0006)
• Status: Zoning approved by City Council on Oct. 5, 2026
• Target opening: December 2026, per September reporting

What is The Schwarz on State?

The Schwarz on State is a renovation of an existing mixed-use building, not a new hotel structure. According to the city’s planning commission packet, the building dates to 1979. Eight second-floor apartments would become hotel suites, and one first-floor commercial unit would be converted into three more rooms, including ADA-accessible accommodations.

The suites are planned as one-bedroom, one-bathroom units built for both overnight and mid-term stays. That blend of boutique hotel and furnished extended-stay lodging is a different model from the larger hotels found elsewhere in O’Fallon.

The building has a long history downtown. It previously housed The Medicine Shoppe, which operated there from the early 1980s through 2024. At the time the city’s staff report was prepared, the first floor was home to five businesses: Posh Paws, Skin Serenity, Willow & Grace Boutique, Juice Heal Thrive and Hair Envy Suites.

Who is behind the project?

Chad Schwarz purchased the property, then known as the Schwarz Center, in 2022. Some of the apartments have since operated as furnished rentals, which became the foundation for the hotel concept.

Schwarz told the Belleville News-Democrat that his existing apartments had already shown demand for stays of roughly 30 to 90 days. He identified a wide range of likely guests, including:

• Travel nurses and other healthcare workers
• Military personnel
• Business travelers and interns
• Families visiting hospitalized relatives
• People temporarily out of their homes during renovations

In the same interview, Schwarz described wanting the hotel to connect with downtown’s merchant community, naming the Vine Street Market, local restaurants and independent retailers.

What will change at the building?

The design proposal in the city’s packet focuses on refreshing the existing exterior instead of rebuilding it. The proposed color palette includes forest green, sage, warm ivory, stone and charcoal, with understated boutique branding.

Planned improvements include:

• New exterior staircases, railings and guest-room doors
• Recessed lighting along stairwells and walkways
• New room numbers, directional signs and illuminated hotel signage
• An arrival and check-in area created by removing the existing mailboxes
• Exterior security cameras and electronic keyless entry
• Decorative artwork along the upper walkway, including trompe-l’œil graphics that create the look of architectural features and landscaping

Inside, the proposal calls for upgraded furnishings, curated artwork and historical photography celebrating O’Fallon’s heritage. One notable design choice: the rear of the building is planned to become the main guest entrance, while the first-floor rooms would also have front access.

How will the hotel operate?

The Schwarz on State isn’t planned around a large lobby, restaurant or traditional front desk. According to the developer’s narrative in the city packet, it would use a smaller, technology-supported hospitality model.

• Reservations: professional hotel-management software
• Check-in: digital or self-service
• Room access: electronic keyless entry
• Guest support: available 24 hours
• Housekeeping: contracted service
• Security: cameras, lighting and local support personnel

The site has about 36 parking spaces plus overflow capacity and three existing access points. The city’s planning report concluded the conversion would not create significant traffic impacts.

What has O’Fallon approved so far?

The project has moved through every step of the city’s zoning process without a dissenting vote.

1. July 6, 2026: Schwarz Properties submitted its planned-use application.
2. Aug. 25, 2026: The Planning Commission held a public hearing and recommended approval 7–0, with conditions.
3. Sept. 14, 2026: The Community Development Committee advanced the project 3–0 with one abstention, according to a meeting summary based on the recording.
4. Sept. 21, 2026: The zoning ordinance went before City Council for a first reading.
5. Oct. 5, 2026: City Council approved the zoning amendment 13–0 with one abstention, according to the meeting minutes.

City planning staff found the hotel use consistent with O’Fallon’s 2040 Master Plan, which designates the site for general commercial use, and with the area’s economic development goals. Staff specifically noted the benefit of bringing customers within walking distance of other downtown businesses.

The ordinance includes five standard conditions:

• Landscaping, exterior lighting and signage must meet city codes.
• Designated overflow parking areas must be paved and improved.
• Signs must comply with the city’s Sign Code.
• The hotel will be subject to applicable city and state hotel accommodation taxes.
• Exterior lighting must be shielded to limit impacts on neighboring homes and meet photometric requirements.

The property also sits within O’Fallon’s Central City Tax Increment Financing district, approved in 2015. The city documents reviewed do not show a TIF agreement or any specific financial assistance for the hotel.

Why does a downtown hotel matter for O’Fallon?

O’Fallon has grown its lodging market over the past several years, much of it in larger hotels along the interstate corridors. In 2023, the Belleville News-Democrat reported that the city’s hotel tax revenue had grown substantially following its Destination O’Fallon initiative.

The Schwarz on State would add something the city’s downtown hasn’t had: a small, independent place to stay inside the existing storefront district. Planning staff pointed to the value of having visitors within walking distance of downtown businesses, and Schwarz has said he wants guests connected to the shops and restaurants around the property.

What happens next?

With zoning in place, the next steps are building permits, renovation work and any approvals needed before guests can check in. Schwarz told the News-Democrat in September that he hoped to have the hotel ready by December 2026. An updated timeline has not been announced, and the sources reviewed do not confirm whether construction has started.

For permit and construction updates, the City of O’Fallon Community Development Department can be reached at 618-624-4500, extension 4, referencing case PU-2026-0006.

Sources: O’Fallon Planning Commission packet, Aug. 25, 2026; O’Fallon City Council minutes, Oct. 5, 2026; City Council agenda, Oct. 5, 2026; proposed zoning ordinance; Community Development Committee meeting record, Sept. 14, 2026; Belleville News-Democrat, “Developer pitches boutique hotel for downtown O’Fallon,” Sept. 4, 2026.

618 Homes is a real estate and development publication based in Edwardsville, covering the Metro East. We report on new development, construction, business openings and closings, infrastructure, and the local housing market.

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