Denver is on the verge of leasing a DoubleTree hotel to house homeless people.

The city could also spend up to $43 million to buy the 300-room, 450-bed DoubleTree by Hilton hotel at 4040 N. Quebec St., a price that would be $18.6 million more than the last time the property was sold in 2022.

The DoubleTree hotel was last purchased in 2022 for $24 million by Denver Project Owner CP, according to property tax records.

Mayor Mike Johnston proposed initially leasing the District 8 property for $83,333.33 a month, part of his campaign to house 1,000 homeless people by year’s end, according to a resolution to be considered by the Denver City Council on Monday.

“The city will master lease the entire building from a nonprofit partner for encampment resolution sheltering and emergency cold weather sheltering,” Lisa Lumley, director of real estate for the city, told councilmembers during Wednesday’s homelessness committee meeting.

The hotel contains conference rooms, a full kitchen and laundry facilities, Lumley said.

If leased, the landlord would be 4040 Quebec LLC under a maximum contract amount of $1,250,000, according to a proposed lease agreement with Denver. The contract would be for one year, with a three-month extension option.

The city could purchase the property for a maximum of $43 million at any time during the term of the lease. The proposed contract includes a hotel purchase price of $39 million, as well as additional costs.

Johnston’s goal is to clear out encampments and move homeless people in temporary shelters. The mayor’s strategy includes buying hotels, leasing units and building micro-communities.

“The hope with this particular site is that we’ll start with the current needs related to our emergency and put as many folks in there as possible,” said Department of Housing Stability Director of Homelessness Resolutions Programs Midori Higa. “The middle of next year we would start having some daytime access available for folks for case management support and services.”

The DoubleTree hotel was last purchased in 2022 for $24,390,244 by Denver Project Owner CP, according to property tax records.