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Washington DC Hotel Marriott Marquis PDF Print E-mail
Written by ARC   
Wednesday, 24 March 2010 16:51
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Background
• Convention Center struggles to compete with other markets effectively without a convention center hotel
• RFP was issued in 2001 to solicit ideas from developers for construction of a HQ hotel
• Two respondents; Marriott (West side of CC) and Hilton (East side of CC) with respective developer partners
• In 2006, Council passed legislation authorizing the Mayor and the WCCA to enter into long-term lease agreements with Marriott International as hotel operator/manager
• The legislation authorized a public TIF subsidy and corresponding bond authority in a public/private format

Development Program
• 1,174 room Marriott Marquis (3rd Marquis in country)
• 25,000 sf of retail
• 100,000 sf of meeting/ballroom space
• 385 parking spaces (valet)
• Below grade tunnel (vehicle and pedestrian) connection between hotel and Convention Center
• Will be constructed on land owned by the District and Convention Center Authority and leased to the Developer for 99 years
• $537 million total project cost

Convention Center HQ Hotel
• Timeline
• Scheduled to break ground in October 2009
• Delivery in early 2013 (42 months)
• Developer committed to contribute $331 million (either equity or debt) and provided guaranty of $350 million
• Funding
• Given importance of project, the District decided to expend its Recovery Zone Bond allocation as follows:
• Facility Bond allocation - $110/$130 million
• Economic Development Bond allocation - $90/$90 million
• District to contribute $134 million from bond proceeds
• Convention Center to contribute $47 million cash and loan $25 million from bond proceeds
• Total government grant and loan contributions to Project equals $206 million

Benefits to the District:
• $200 million PV direct, net fiscal benefit over 20 years
• Creates 1,000+ permanent jobs
• Self-supporting through TIF Revenues and Loan and Lease payments to be paid from project revenues
• Enhances WCCA’s ability to effectively leverage the District’s world-class convention center
• Provides much needed neighborhood amenities; enhances and activates streetscape
• Improves safety in neighborhood
• Catalyst for new development around the Convention Center and provides support for struggling retail in neighborhood

 

Last Updated on Thursday, 20 May 2010 17:16
 

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