The names may share some similarities, but that’s where the tale of two hotels stops. Division Hotel Management, with Valencia Hotel Group, is planning to knock down the run-down Caravan Motel at 908 E. Division St. and build a 145-key upscale, boutique hotel called Caravan Court. Caravan Court will be designed as a retro-style “motor court” concept with a mid-century design. The plan is to reuse the historic Caravan Motor Hotel sign located on the property.

Arlington City Council voted to provide $4 million to support the hotel’s development: $3 million to help with demolition and $1 million to support development for 10 years. The project is expected to cost $45 million.

If the boutique hotel is developed, the city estimates it will have a $13 million financial impact over the 15-year agreement, along with new tax revenue from hotel occupancy, property and sales taxes. The hotel is expected to be built by the end of 2026.