Tentative Deal Reached on Washington, DC Convention Hotel

Construction on the Marriott convention hotel in Washington DC, to be built adjacent to the DC convention center, could begin as early as this fall if a deal between city officials and a pair of developers goes through. Pending approval of the D.C. Council, the agreement would have the city and the Washington Convention Center Authority to spend an additional $80 million on the hotel and an adjoining garage, according to The Washington Post.

This amount comes in addition to the $187 million it had already pledged to spend. The remaining cost would be acquired from private financing secured by Quadrangle Development and Capstone Development along with ING.

Getting financing for the hotel was a matter of debate when I first blogged about the convention hotel in early June. At the time, DC city officials were considering issuing as much as $750 million in bonds to build the hotel, despite the city's $800 million deficit.

Additionally, concerns arose after the Washington Business Journal published a story saying that some development projects, such as the Skyland Shopping Center, Arena Stage, and Southwest waterfront, could be scrapped in order to pay for the hotel.

A vote on the funding plan should occur next month.
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