"One thing is just feeding another," Langford said. "I'm going to give them the property and they're going to build a hotel."
City public works employees tore down the old warehouse a day after the vacant building was damaged by a fire that investigators said was intentionally set.
Shinsegae U.S.A. also hopes to buy other property surrounding the hospital and develop condominiums, among other projects, company officials said.
The company on Wednesday announced plans to restore the former McArthur School near the hospital and convert it into a training center for South Korean nurses.
Physicians Carraway CEO Shannon Winslett, who is acting as spokeswoman for the investor group, could not be reached for comment on the hotel project.
The process of clearing the property could take two to three weeks.
Langford said he ordered the immediate demolition of the city-owned building to show the Korean investors the city was serious about partnering to improve the area.
"It will become a very prime piece of real estate for a business to locate," he said. "I moved the timetable up so they could be there. Once we promise to do something, I'm going to do it the next day."

The company has not sought city incentives on any of its project besides the donation of the school property and warehouse site. Initially, Carraway executives had sought some tax rebates to help the cash-strapped facility, but the $15 million investment by Shinsegae earlier this month made that request unnecessary, Langford said.

Council support:
Council members praised the two days of redevelopment news.

"With that hospital being steeped in tradition, I am happy we are able to do something with respect to salvaging the hospital and its mission," said Councilman Steven Hoyt, chairman of the economic development committee.

The former warehouse site is a practical location for a hotel because of its proximity to the interstate, downtown and the Birmingham-Jefferson Convention Complex, said Michael Calvert, president of Operation New Birmingham. Calvert, whose organization focuses on downtown revitalization, said plans near the hospital work in conjunction with city center redevelopment.
"It's not all that unusual for hospitals to be heavily involved in their surrounding areas," Calvert said. "Strengthening surrounding neighborhoods like Norwood, Druid Hills, Central City and Fountain Heights, all of that helps downtown and it goes the other way as well. Strengthening downtown helps those neighborhoods."
Langford said an agreement on the property should be ready in about 30 days. Meanwhile the company will develop a plan and conceptual designs for a hotel, he said.
News staff writer Jeremy Gray contributed to this report. jbryant@bhamnews.com