The owner of a new hotel going up in eastern P.E.I. is hoping he has timing on his side and tourism is on the rebound.

The River House Inn will be four storeys high and the tallest building in Montague. The 30-room hotel cost about $3 million to build.


Robert Jay is hopeful his new hotel will open just as the tourism industry starts to recover. (CBC)

The owner, Robert Jay, believes Montague is ready for more hotel-style accommodation.

"Tourism's been down a little bit in the last couple of years in PEI, but I think we've already hit rock bottom a year or so ago and we're starting to see the recovery," said Jay.

The new hotel will include a banquet hall and a small auditorium.

The hotel owner had to be granted an exemption from the town's height bylaw to go ahead. Mayor Richard Collins said the new business fills a need.

"We lost about 100 rooms in the community over the last five years, with the Shanty closing, and the Whim Inn closing," said Collins.

The River House Inn is expected to open in August.