Components: 1,500-Room Convention Hotel Adjacent to the Washington Convention Center
Project Value: $800 million
SAG is managing the pre-development process for the District of Columbia for the development of a 1,500-room hotel adjacent to the new Washington Convention Center. Our services included project sizing, site selection, site acquisition, land swap negotiations, developer identification, contract negotiations, finance plan development, design evaluation, development budget review, room block agreement negotiations, numerous stake holder and City Council presentations, and a number of other tasks required in our role of representing the District in the transaction. After evaluating a number of approaches to the project, the District decided to develop the hotel via a public-private partnership. The hotel will be privately owned by a developer teamed with Marriott. The project’s capitalization includes private debt and equity, and public support in the form of a subordinated land lease, conduit financing, and a grant funded by a bond offering repaid by a portion of the taxes generated by the hotel.