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106-569: The hotel has 100,000 square feet (9,300 m) of meeting room space, which includes a 30,000-square-foot (2,800 m) main ballroom and two smaller 10,800-square-foot (1,000 m) ballrooms. The building is topped by a 18,800-square-foot (1,750 m) glass-encased penthouse, and a 5,200-square-foot (480 m) outdoor event terrace. The hotel is owned by Capstone Development , the District of Columbia , ING Group , Marriott International , and Quadrangle Development Corporation . The operator

212-537: A $ 1 billion deficit in 2011, such approval seemed unlikely. The city council began considering in June 2009 whether an additional $ 100 million in city financing might convince lenders or investors to join the project. On June 7, Capstone said it had $ 135 million in equity dollars in place, but needed $ 300 million in lending for that equity to be committed. In mid June, the city council considered transferring funding away from seven other city-backed development projects to fund

318-410: A $ 417 million, 1,200-room hotel with 100,000 square feet (9,300 m) of meeting space and 600 parking spaces would be financially viable. CSIL said that a hotel constructed on the old convention center site would take 12 to 15 months longer to build and cost $ 12 million more. The report appeared to quash any further attempt to build on the old convention site. After council approval for Williams site,

424-519: A 1,500-room hotel with extensive meeting room space linked by a tunnel to the new convention center. Mariani convinced several members of the City Council that this would be the best use of the land. The Williams administration strongly opposed Mariani's plan. Over the next month, members of the Williams administration and city council staff met to discuss Mariani's proposal. Joe Sternlieb, head of

530-436: A 1.5-acre (0.61 ha) lot on the southeast corner of 9th Street NW and Massachusetts Avenue NW for a similar-sized city-owned lot at the site of the former convention center. The deal required city council approval, however. The agreement also said, in part, that the city would seek changes to restrictive zoning regulations on the old convention center site. Local zoning regulations required that 200 units of housing by built on

636-414: A 14-story, 1-million-square-foot (93,000 m) hotel with a glass and steel facade. The facade of the historic 1916 Pipefitters building would be incorporated into the facade. The design required digging 100 feet (30 m) below ground to build 1,000 parking spaces and two levels of usable space to accommodate 100,000 square feet (9,300 m) of ballroom and meeting room space (which had been restored to

742-576: A convention headquarters hotel. But city officials turned down this request, saying there was significant risk it would not produce the tax revenue to make the TIF financially viable. D.C. Councilmember Jack Evans introduced legislation to award the TIF to the Washington Renaissance Hotel, but it did not pass and the hotel's owner sold the land on which the expansion would have occurred. The hotel would have expanded onto an empty lot on

848-875: A cooperative venture between Marriott and RLJ Hotels (the hotel investment operation of cable TV magnate Robert L. Johnson ). The joint venture purchased 90 hotels, and left RLJ Hotels as one of Marriott's largest co-investors. Jenkins also convinced Marriott to build a Residence Inn in downtown Silver Spring, Maryland . The hotel helped revitalize Silver Spring's downtown business district. Jenkins announced his departure from Marriott in late November 2008. After 16 years at Marriott, Jenkins departed on January 1, 2009. In February 2009, Jenkins formed Capstone Development LLC with money from private equity funds, wealthy investors, and his own money. The company said in February 2009 that it already had good relationships with banks willing to give it development loans. Capstone's strategy

954-424: A former Marriott executive, as a new financing partner. However, Marriott, Capstone, and Quadrangle Development were unable to find the funds needed to begin construction. In an attempt to rescue the project, on May 29, WCSA authorized the sale of $ 750 million in bonds to pay for the hotel. To issue these bonds, WCSA needed city council approval. But with the city facing an $ 800 million budget deficit in fiscal 2010 and

1060-579: A high-quality hotel near a major airport was a valuable business strategy. Within two years, they opened Hyatt House Hotels near San Francisco International Airport and Seattle–Tacoma International Airport . The company went public in 1962 as Hyatt Corporation. It had two divisions: Hyatt House Hotels and Hyatt Chalet Motels (renamed Hyatt Lodges in 1966). In 1967, the company opened the Regency Hyatt House in Atlanta, Georgia (today named

1166-448: A large hotel, questionably financed by the city, was really needed to make the convention center profitable. Pearlstein argued that two 500-room hotels, built solely with private financing, would be adequate. In April 2004, the D.C. City Council began debating whether the convention headquarters hotel should be built on the site of the old convention center. This proposal originated with local architect Ted Mariani, who proposed constructing

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1272-483: A lifestyle hotel operator for $ 125 million, with up to an additional $ 175 million over the next six years as properties come into the pipeline and open. Dream Hotels Group's portfolio include 12 managed or franchised lifestyle hotels under four brands. In April 2023, Hyatt acquired Mr and Mrs Smith, a UK-based platform offering direct booking access to over 1,500 boutique and luxury properties worldwide for £53.0 million in cash consideration. In June 2024, Hyatt acquired

1378-410: A local developer and former president of the D.C. Building Industry Association, stepped in at the end of October to assist the two sides in coming to an agreement. WCSA then scheduled a vote on the consultant's report for November 4. WCSA again delayed its vote until December, but released CSIL's report on November 4 under pressure from the other parties in the dispute. The report analyzed six sites for

1484-421: A nationwide boom in the construction of convention centers had caused the 285,000-square-foot (26,500 m) convention center to see a dramatic drop in business. In May 1990, the city unveiled plans for a new $ 685 million, 2.3-million-square-foot (210,000 m) convention center. Ground was broken for the new Walter E. Washington Convention Center on 2 October 1998, and it opened in 2003. With few hotels near

1590-510: A night on 1,500 rooms, the Johnson study found the hotel would generate $ 135 million in gross revenues in its first year, resulting in a $ 34 million deficit. Nevertheless, the Johnson study called the convention headquarters hotel a "necessary ingredient", citing the size of the new convention center, the distance (nearly 2 miles (3.2 km)) to the largest hotel, and the small size of nearby hotels. The Johnson study did not attempt to account for

1696-716: A private company in 1979, when the Pritzkers bought the outstanding shares. Elsinore was spun off as a public company. The company opened the Playboy Hotel and Casino as a joint venture with Playboy Enterprises . Alongside the Hyatt Regency brand, the company introduced the Grand Hyatt brand in 1980, with the opening of the Grand Hyatt New York (now Hyatt Grand Central). That same year,

1802-408: A revised agreement on May 24, and the council unanimously approved a plan to redevelop the old convention center site on June 6, 2005. The agreement said that 120,000 square feet (11,000 m) of land on the northeast corner of the old convention center site would remain undeveloped pending council resolution of what to do with the property. Under the plan, the council also retained authority to change

1908-415: A second and final vote by the council on July 14, 2009. A $ 2 million training program (to be paid for by the bond issue) was added to the city's bond issue. The money raised paid the construction contractor to train unemployed city workers in various skilled construction jobs while the hotel was built. Marriott officials said that, with the financing finally in place, groundbreaking would occur in late 2010 and

2014-493: A series of acquisitions, especially in the lifestyle and resort segments. Today, Hyatt categorizes its brands under four categories: timeless collection (containing Hyatt's classic brands), boundless collection (lifestyle brands), independent collection (soft-branded independent properties) and inclusive collection (all-inclusive hotels). Timeless Collection houses Hyatt's signature hotel brands, including: Boundless Collection houses Hyatt's lifestyle hotel brands. Following

2120-637: A site he owned at 7th Street NW and New York Avenue NW. Four proposals for the 1,000-plus room hotel, now priced at $ 300 million, were submitted by the August 2001 deadline. They included proposals by: Although the city targeted making a decision by December 2001, the September 11 attacks caused a severe economic downturn in Washington, D.C., which caused the city to delay its decision on the RFP for more than

2226-634: A total of $ 172 million. The development partners asked the District of Columbia for $ 35 million in tax increment financing , although at that time the city said it was unlikely to provide this. Capstone Development also submitted a proposal to redevelop historic Stevens Elementary School in the West End neighborhood of Washington, D.C. However, Capstone's proposal did not make the short list of acceptable proposals. Hyatt Hyatt Hotels Corporation , commonly known as Hyatt Hotels & Resorts ,

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2332-447: A worsening economic climate made less credit available. Marriott and RLJ Development said that, without additional public funds, they would not turn a profit on the hotel. In response, council member Jack Evans (long a supporter of the hotel) suggested that the city cancel the project. A side-issue involved construction of the 50,000-square-foot (4,600 m) meeting center, agreed to in February 2006. At that time, Marriott agreed to let

2438-498: A year for the city to work out its TIF proposal. On December 16, 2003, the mayor's office finally asked the Council to establish a nonprofit entity authorized to issue tax-exempt bonds and borrow $ 1 billion. Under the plan, $ 460 million of the bond issue would go toward building the convention headquarters hotel. The city said Tishman Realty & Construction , not JBG, would construct the hotel. The remaining bond issue would refinance

2544-474: A year. The award for the convention headquarters hotel went to Marriott International in October 2002. The award was not made until October 29, 2002. The mayor's office said the city would probably provide TIF financing to the project, which now was projected to have 1,500 rooms, 90,000 square feet (8,400 m) of meeting room space, cost $ 500 million, and open in late 2006 or early 2007. The Marriott/Gould bid

2650-446: A year. City officials countered by pointing to the two studies conducted in 2000 which came to different conclusions, and by noting that the convention center had promised those booking large meetings at the site that a headquarters hotel would be open by 2007. Without the hotel, these groups could cancel completely, they said. On March 29, 2003, the $ 600 million Walter E. Washington Convention Center officially opened. It took more than

2756-547: A year. However, the study also warned that any convention headquarters hotel would have to rely on non-convention meetings for a substantial portion of its business—putting it in competition with the smaller hotels in the city. By November 2000, discussion by private developers and the city focused less on whether to build a convention headquarters hotel but how large it should be. The new hotel needed 1,200 to 1,500 rooms and at least 80,000 square feet (7,400 m) of meeting room space. It also needed to be within walking distance of

2862-400: Is Marriott International. It opened on May 1, 2014, and has 1,175 rooms (which includes 49 suites), a lobby with multi-story atrium, and four dining outlets on the first floor. The hotel has 14 stories above ground, and four stories below. The Washington Convention Center , Washington, D.C.'s second convention center, opened on December 10, 1982. However, by 1990, the facility's small size and

2968-614: Is an American multinational hospitality company headquartered in the Riverside Plaza area of Chicago that manages and franchises luxury and business hotels , resorts , and vacation properties. Hyatt Hotels & Resorts is one of the businesses managed by the Pritzker family . Hyatt has more than 1350 hotels and all-inclusive properties in 69 countries, across South America, North America, Europe, Asia, Africa and Australia The Hyatt Corporation came into being upon purchase of

3074-593: Is positioned as a luxury brand, with the first hotel being a rebrand of the Great Eastern Hotel in London , followed by hotels in San Diego , West Hollywood , Shanghai and New York City . In August 2009, it was reported that Hyatt Hotels Corporation filed plans to raise up to $ 1.15 billion in an initial share sale. That November Hyatt completed an initial public offering and began trading publicly on

3180-578: Is to acquire or build hotels in the mid-Atlantic region in the United States. Company executives say their strategy is to focus on specialty hotels , hotels in markets that have high barriers to entry , and hotels that are market leaders . The company also said it would engage in public-private finance and development partnerships, as Jenkins had extensive experience in that area. At the time it formed, Capstone Development executives said they already had five projects in development and another four in

3286-511: The Blackstone Group , a New York -based private equity investment firm. Blackstone had inherited AmeriSuites from its 2004 acquisition of Prime Hospitality. The AmeriSuites chain was rebranded and called Hyatt Place, a competitor to the limited-service products Marriott International 's Courtyard by Marriott and Hilton Worldwide 's Hilton Garden Inn . In December 2005, Hyatt acquired limited service company Summerfield Suites from

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3392-589: The Deep South . The company has two subsidiaries. Capstone Management Services provides hotel management services, and Capstone Procurement provides food service and janitorial supplies for hotels. Capstone Development was founded by Norman Jenkins in February 2009. Jenkins, a highly regarded senior vice president at Marriott International and African American, helped Marriott launch a Diversity Ownership Initiative in 2005 which worked to improve hotel franchise ownership among minorities. A year later, Jenkins oversaw

3498-461: The Downtown D.C. Business Improvement District ; James A. Jemison, mayoral planning aide; and city development consultant Ron Kaplan met for two to three hours a day, three times a week, with council staff and offered to agree to a hotel and some meeting space so long as the council approved the deal by late June. But Council Chair Linda W. Cropp and Council Member Jack Evans (in whose ward the site

3604-526: The Hyatt Regency Atlanta ). The futuristic hotel was designed by Atlanta architect John Portman , who would go on to design many other hotels for the chain. It featured a massive indoor atrium, which soon became a distinctive feature of many Hyatt properties. In 1968, Hyatt International was formed, to operate hotels outside the United States. It would soon become a separate company. In 1969, Hyatt opened its first international hotel, when it

3710-912: The JdV by Hyatt brand. In 2024, Hyatt purchased the Me And All Hotels brand from Lindner. Hyatt operates a loyalty program called World of Hyatt , which replaced Gold Passport on March 1, 2017. This program includes membership tiers of base members, Discoverists, Explorists, and Globalists. The program offers Hyatt members benefits such as room upgrades and complimentary breakfast, based on how many nights they stayed in Hyatt-affiliated hotels or how much they spend in Hyatt properties. Fortune magazine ranked Hyatt #32 on its list of "America's Best Companies to Work For" in 2019, rising to #16 in 2021. The Human Rights Campaign (HRC) has awarded

3816-811: The Joie de Vivre , Destination , Alila , and Thompson hotel brands to the Hyatt portfolio, a growth of 85 hotels in 23 markets. In March 2021, Hyatt announced the official opening of Hyatt's 1,000th hotel worldwide, Alila Napa Valley in St. Helena, California. In August 2021, Hyatt acquired Apple Leisure Group  (ALG), a luxury resort-management services, travel and hospitality group, from affiliates of Kohlberg Kravis Roberts and KSL Capital Partners for $ 2.7 billion in cash. ALG's hotel portfolio consists of over 33,000 rooms operating in 10 countries. The acquisition will extend Hyatt's brand footprint into 11 more European markets. In November 2022, Hyatt acquired Dream Hotels Group ,

3922-1078: The New York Stock Exchange under the symbol H. According to the filing Mark S. Hoplamazian was to serve as CEO and Thomas Pritzker as Executive Chairman . The public offering was a result of the acrimonious breakup of the Pritzker family empire. Accused of looting family trusts, Thomas and cousins Penny and Nicholas took control of the family businesses when they and other family members were sued by cousin Liesel Pritzker , claiming fraud and seeking damages of over US$ 6 billion. On September 1, 2011, Hyatt acquired Hotel Sierra, which had 18 properties in 10 states. Along with Hyatt Summerfield Suites hotels, several of these properties were rebranded as Hyatt house in January 2012. In November 2013, Hyatt introduced their first all-inclusive resort brands, Hyatt Ziva and Hyatt Zilara, with

4028-485: The University of Texas at San Antonio concluded that "Putting in a hotel is no guarantee that it will improve the [Walter E. Washington Convention Center's] performance." But others defended the need for a convention headquarters hotel. Convention center officials and William Hanbury, president and chief executive officer of Washington Convention & Tourism Corp. (a nonprofit group promoting conventions and tourism in

4134-527: The 80% set-aside in September. The concessions by Marriott worked. On September 24, 2007, Marriott, WCSA, and the city signed an agreement to jointly finance the 1,150-room hotel. Marriott released details about the hotel's ongoing design effort in October 2008, more than a year after the structure's specifications had been agreed to by the city. The company said the convention headquarters hotel would break ground in 2009 and open in 2012. Marriott planned for

4240-526: The Blackstone Group. Blackstone had inherited Summerfield Suites from its purchase of Wyndham International . In January 2012, Hyatt Summerfield Suites were rebranded as Hyatt House in 2012 to compete in the "upscale extended stay market" against Residence Inn , Homewood Suites, and Staybridge Suites. Hyatt launched its first lifestyle brand, Andaz, in April 2007. Hindi for the word 'style', Andaz

4346-523: The Grand Hyatt and Park Hyatt brands to its portfolio. In 1995, Hyatt entered the vacation ownership market. Hyatt introduced the Hyatt Place brand, designed as a limited service offering for business travelers, in 2006. Hyatt House was Hyatt's first select-service property, catering primarily to travelers with long-term stays and at a more economical price point. Since then, Hyatt has added a wide range of other brands either through organic growth or via

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4452-555: The Hyatt House, at Los Angeles International Airport , on September 27, 1957. In 1969, Hyatt began expanding internationally. Hyatt has expanded its footprint through a number of acquisitions, including the acquisition of AmeriSuites (later rebranded Hyatt Place) in 2004, Summerfield Suites (later rebranded Hyatt House) in 2005, Two Roads Hospitality in 2018, Apple Leisure Group in 2021, Dream Hotel Group in 2023 and Standard International in 2024. The first Hyatt House

4558-640: The Plumbing and Pipe Fitting Industry (the Pipefitters), and the union's American Federation of Labor Building , its historic, 90-year-old headquarters occupied the site. Marriott, Gould, and the city hoped to convince the Pipefitters to sell their building for the hotel development. To prevent the Lubert-Adler purchase, WCSA placed a $ 900,000 deposit on the Pipefitters' property, and pledged that

4664-430: The TIF plan. Resolution to the dispute came in June 2005, after more than a year delay. By April 2005, a majority of the city council had come to support the Williams proposal, and the council planned to approve the Williams plan on May 4. But Cropp convinced the council to put off the vote, arguing that the bill still gave the mayor absolute discretion over where to build a convention headquarters hotel. Williams submitted

4770-525: The World, which allowed World of Hyatt members to earn and redeem points during their stays at participating SLH properties. The partnership has since ceased in 2024 following Hyatt's acquisition of Mr & Mrs Smith, a direct booking platform of luxury hotels. In 2022, Hyatt entered into an exclusive collaboration agreement with Lindner Hotels AG, a German hotel operator, in bringing more than 30 hotels across seven European countries into Hyatt's portfolio under

4876-937: The acquisition of Standard Hotels announced in August 2024, Hyatt will form a dedicated lifestyle group led by Standard International's Executive Chairman Amar Lalvani overseeing all lifestyle hotel operations. Current brands in the portfolio include: Independent Collection houses Hyatt's soft brands of independent hotels, including: Formerly AMR Collection and AMResorts of Apple Leisure Group , Inclusive Collection houses Hyatt's all-inclusive resort brands following its 2021 acquisition of ALG . Brands include: In 2013, Hyatt partnered with MGM Resorts International in bringing 12 MGM properties in Las Vegas to Hyatt booking channels, as well as in-depth collaborations with each other's loyalty program. The partnership ended in 2023 when MGM partnered with Marriott International instead. In 2018, Hyatt began partnering with Small Luxury Hotels of

4982-546: The addition of private equity investment in the hotel was considered a positive sign. Not only did existing finance deals fall apart in 2008, but costs on the project rose. As the developers asked for additional public financing, the city's debt cap began to play a role in negotiations. In February 2007, RLJ Development officials warned that the excessive delay in approving the project was leading to higher costs, and might lead Marriott and its partners to seek additional public funding. City CFO Natwar Gandhi warned in June 2007 that

5088-514: The bonds reasonable, the city stated it would also seek authority to divert up to $ 19 million in general sales tax revenue in the event the hotel didn't generate enough revenue to pay interest on the TIF bonds. The city's TIF financing proposal was controversial. Critics such as Charles W. McMillion, chief economist at the business consulting firm MBG Information Services, argued that the convention headquarters hotel would lead to lower sales tax revenue by reducing pressure on hotel room rates throughout

5194-666: The boutique Park Hyatt brand was also introduced. The Pritzkers took Hyatt International private as well, in 1982. However, Hyatt and Hyatt International remained two separate companies until June 2004, when substantially all of the hospitality assets owned by the Pritzker family business interests, including Hyatt Corporation and Hyatt International Corporation, were consolidated under a single entity called Global Hyatt Corp. On June 30, 2009, Global Hyatt Corporation changed its name to Hyatt Hotels Corporation. In December 2004, Hyatt Hotels Corporation acquired AmeriSuites , an upscale chain of all-suite business class hotels from affiliates of

5300-472: The city and Kingdon Gould III became locked in negotiations over Gould's land which would take nearly two years to resolve. The reason for the negotiations is not clear. Gould joined the original proposal by Marriott to build the hotel, and seemed willing to use his land for it. But at some point between October 2002 and January 2006, it became clear that private financing for the convention headquarters hotel could not be obtained with so many property owners. Gould

5406-403: The city and by keeping attendees away from local restaurants and retail businesses. The convention headquarters hotel, critics also noted, would not have enough attendance to make up the lost sales tax revenue. Executives at other hotel chains said the city's financing deal projected sales tax revenue of $ 40 million to $ 48 million a year, but a more reasonable estimate was $ 25 million to $ 30 million

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5512-452: The city build this meeting center on part of Marriott-owned land just north of the convention headquarters hotel site. Marriott would build zoning-required housing on the rest of the land. But Marriott changed its mind, and asked the city to buy the parcel for $ 50 million. The city declined to do so, which put the February 2006 construction agreement in jeopardy. Even if the city did purchase the land, Marriott would be forced to lease it back for

5618-453: The city negotiated only with Marriott, eliminated the private investment requirement, added $ 272 million in public financing, and gave Marriott an "extraordinarily favorable" lease. JBG argued that these changes so altered the terms of the project that it should be put out for public bid again. The appeals board said in July 2009 that JBG lacked standing to protest the award since it never bid on

5724-477: The city would be left with just $ 122 million to spend on development and infrastructure between 2008 and 2014. Marriott tried to calm the city's fears by saying it had not yet approached the capital markets to seek private financing, and would not do so until at least April 2009. Private financing for the hotel collapsed in June 2009. RLJ Development dropped out of the project some time between September 2007 and June 2009, but Marriott added Capstone Development led by

5830-488: The city), blamed the bookings drop on the lack of a headquarters hotel. Hanbury estimated the loss of convention business at $ 200 million. Additionally, the Washington Post reported that hotel occupancy in the city was still so high that few hotels were willing to give conventions the significant rate discounts they usually received. This, too, was hurting convention center bookings. Other issues threatened to raise

5936-418: The convention center headquarters hotel occurred again in 2007. Convention hotel room bookings in Washington, D.C., fell 13% in 2006 and were estimated to fall another 24% in 2007 and 29% in 2008, bringing into question the need for a headquarters hotel. In Baltimore, Maryland , a convention center headquarters hotel approved in 2006 failed to boost convention bookings. Furthermore, Gaylord Entertainment Company

6042-412: The convention center's existing debt to take advantage of much lower interest rates. The bundled debt issue, the mayor's office said, made the bond issue more attractive to investors because it was backed by revenues from two entities rather than one. To further ensure that the bonds were accepted by Wall Street, the city agreed to guarantee a portion of bonds' interest with general sales tax revenue in case

6148-441: The convention headquarters hotel. The city said it would do so for $ 5 million a year, but Marriott balked and offered to pay $ 500,000 to $ 600,000 a year. To save the project, Marriott agreed to scale back the size of the hotel. Shortly after the request for more public funding, District asked Marriott to cut the cost of the facility by reducing the number of rooms to about 1,000. Marriott agreed to build only 1,150 rooms, and to scrap

6254-591: The conversion of a portion of the Marriott Wardman Park , which JBG and CIM Group purchased from Thayer Lodging in 2005, into condominiums. Capstone Development Capstone Development LLC is a privately held real estate development company based in Washington, D.C. , in the United States. It was formed in 2009. As of January 2013, it owned six hotels along the East Coast and in

6360-512: The cost of the hotel and put its viability in question as well. A new sticking point was how many rooms the hotel would have to set aside each night for convention business. Marriott and its finance partners wanted fewer rooms dedicated to convention business so that its operating margins would be higher. Marriott also wanted to build multiple mid-size meeting rooms rather a few large ballrooms. No agreement had been reached on these issues by February 2007, despite several months of negotiations. However,

6466-457: The cost would need to be reduced to $ 169 million. Monument sought $ 57.3 million in tax increment financing (TIF) but never received approval from the city for the funds. In late October 2000, Monument Realty sold the parcel for $ 43.2 million to Boston Properties . An office building, 901 New York Avenue , was built on the site. In fall 1999, the Washington Renaissance Hotel at 9th and I Streets NW applied for $ 25 million in TIF money to expand into

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6572-432: The development fund owned by billionaire cable executive hedge fund owner Robert L. Johnson , said on September 11, 2005, that they were working on a plan to privately finance the hotel and avoid the city council altogether. But no private financing fell into place, either. In February 2006, Mayor Williams resubmitted to the city council his three-year-old proposal for public financing the convention headquarters hotel. With

6678-564: The development planning stage. Some of these were public-private developments. Capstone Development has several projects which are already finished or under construction. These include the following: In September 2011, Capstone said it had signed an agreement with Marriott International to build a Residence Inn and a Courtyard by Marriott on a parcel of Marriott-owned land just north of the Washington Marriott Marquis. The two hotels combined would have 500 rooms and cost

6784-436: The development potential of that site. Williams said a decision on a proposal would be made by the end of the year, and left open the possibility that the city would subsidize the hotel's financing. Real estate developer Kingdon Gould III said he was willing to build a hotel on an 85,000-square-foot (7,900 m) lot he owned at the corner of Massachusetts Avenue NW and 9th Street NW. Similarly, developer Douglas Jemal offered

6890-537: The economic impact of the hotel on other businesses in the city. Another study by PricewaterhouseCoopers , commissioned by the Washington Convention and Sports Authority (WCSA), found that in its fourth year of operation, the convention center would generate a demand for 55,500 more room nights than the city's existing hotels could accommodate. In time, PricewaterhouseCoopers concluded, the new convention center would generate demand for 500,000 room nights

6996-480: The first resorts being opened in Cancun, Puerto Vallarta, Los Cabos and Rose Hall, Montego Bay, Jamaica. On October 28, 2015, Hyatt announced that they were in advanced talks to acquire Starwood Hotels in a cash and stock transaction. The transaction was not completed, and Starwood was acquired by Marriott International instead. In 2018, Hyatt saw expansion with the acquisition of Two Roads Hospitality. This added

7102-489: The historic building would be incorporated into the new hotel rather than demolished. On August 22, the Pipefitters agreed to sell their 145,000-square-foot (13,500 m) parcel to WCSA for $ 30 million. This sale significantly strengthened the appeal of the Williams-preferred site. The convention headquarters hotel proposal received a major boost on September 11, 2005, when a second report by CSIL concluded that

7208-655: The hotel TIF did not cover the interest. The mayor and city council were still negotiating over the TIF deal in March 2004, although both hoped to have legislation passed by May. Even as the Center for Exhibition Industry Research said a headquarters hotel was important for the success of the convention center, there was concern by other hotels in the city that the convention center had not generated enough room nights to justify its construction. The Washington Post business columnist Steven Pearlstein questioned in April 2004 if such

7314-429: The hotel project itself would pay for $ 135 million in equity financing, while the other $ 24 million in equity money would come from other TIF revenue sources in the city. WCSA would contribute a $ 25 million loan (payable over 25 years) as well as a one-time $ 22 million grant to build the hotel. The city also agreed to eliminate the requirement that a parking garage be built near the hotel. The June 29 financing deal passed

7420-563: The hotel to have six restaurants, five at street-level. These first floor restaurants would include a traditional restaurant, a "concept" restaurant, a cafe, a sports bar, and an upscale liquor bar. Marriott submitted its plans to the D.C. zoning commission for approval in November 2008. The Marriott Marquis' design was submitted to the National Capital Planning Commission in late 2008. The designs outlined

7526-446: The hotel to open 42 months later. A subsidiary of JBG Smith , Wardman Investor LLC, filed a notice with the city's Contract Appeals Board in early 2009 to have the entire project set aside for being an "invalid sole source procurement". JBG argued that the original proposal required the hotel to be built on private land and financed with private money. JBG did not submit a proposal because it could not meet these conditions. Subsequently,

7632-535: The hotel was scheduled to begin in early 2010 in time for a late 2011 opening. Despite questions about the need for the hotel, private financing fell into place by February 2007. Marriott and RLJ Development announced that Quadrangle Development Corporation was joining the project as a financing partner for the hotel, whose cost had fallen to $ 550 million. Even though the city had not issued any approval for alley closures, historic building preservation, excavations down to 80 feet (24 m) below ground, or zoning changes,

7738-432: The hotel would generate enough tax revenue to meet TIF needs, Marriott consultant MuniCap estimated the hotel would generate $ 44.2 million in tax revenue three years after its completion. To ensure that construction began by 2008, the legislation also contained eminent domain language allowing the city to obtain title to two small properties within the parcel which it had not yet acquired. Approval of this financing package

7844-502: The hotel's developers pleaded for yet more public funding. But in July 2008, city CFO Gandhi repeated his warning from June 2007 that the city would breach its debt cap by doing so. The city had already committed to public funding to redevelop the Southwest waterfront , the O Street Market mixed-use project, and the purchase of Skyland Shopping Center, and Gandhi warned that funding might need to be diverted from these and other projects or

7950-405: The hotel, and advised Gould to negotiate with Marriott about parking garage management. The long negotiations triggered the late-fee clause that required the city to pay Gould $ 2.2 million. This, too, delayed the swap, since payment of fees greater than $ 1 million required city council approval. In September, Gould and the city public accused each other of stalling the deal. The Gould land swap deal

8056-400: The hotel, since the council refused to violate the city's debt cap. But several unnamed city council members were unwilling for the city to take a greater equity interest in the hotel after spending $ 700 million on constructing the new Nationals Park in March 2006. On June 17, 2009, the city council and WCSA came to an agreement on a new financing plan crafted by city CFO Natwar Gandhi. Under

8162-417: The job. Even if the company did have standing, the appeals board said, it lost the right to protest after the council passed legislation removing the project from the regular contracting process in 2006. JBG's motive for filing the lawsuit may not have been to contest the construction of the convention headquarters hotel, however. The lawsuit may have been prompted by a dispute between JBG and Marriott blocking

8268-407: The likely cost of the hotel now at $ 650 million, Williams asked the city to sell $ 187 million in TIF bonds to WCSA, which in turn would sell WCSA bonds based on its own revenues as well as those of the TIF. WCSA would use its own bond sales to pay $ 187 million of the hotel's construction costs, with the remainder to be privately financed by Marriott and RLJ Development. The Williams proposal also leased

8374-649: The long delay that would occur while seeking bank loans. The city's total contribution would be $ 267 million ($ 135 million in equity financing, $ 80 million in loans, and $ 52 million in WCSA bond refinancing), all to be raised by a joint city-WCSA bond issue. The D.C. City Council voted unanimously on June 29, 2009, in favor of the new financing package. The deal was revised somewhat from the June 17 agreement. The city agreed to issue $ 225 million in bonds (down from $ 267 million) in order to give Marriott $ 159 million in equity financing (an increase from $ 135 million). TIF revenues from

8480-443: The me and all hotels brand from Lindner Hotels AG, for which Hyatt has entered into a strategic collaboration with in 2022, consisting of six lifestyle hotels and over 1,000 rooms in central city locations across Germany. In August 2024, Hyatt announced the planned acquisition of Standard International , an upscale boutique hotel operator, for $ 150 million, with up to an additional $ 185 million over time as additional properties enter

8586-418: The new convention center, there was a need for a "convention headquarters hotel". In May 1999, Monument Realty proposed constructing a 1,000-room convention headquarters hotel on a 51,000-square-foot (4,700 m) lot it owned on a roughly triangular parcel bounded by New York Avenue NW, K Street NW, and 10th Street NW. Monument estimated the hotel would cost $ 206 million. In order to make the venture profitable,

8692-548: The new convention center. The city hired a consulting firm to determine if it would be financially viable to build a $ 400 million hotel on the following sites: the old convention center, along Massachusetts Avenue NW, or New York Avenue NW. Several large hotel operators expressed interest in building the new hotel, including the Hyatt and Marriott chains. However, no additional action was taken at that time. Six months later, in April 2001, D.C. Mayor Anthony A. Williams announced he

8798-477: The northwest corner of 7th and I Streets NW. The International Brotherhood of Electrical Workers Building was constructed on this quarter-block site in 2004. To decide if a convention center headquarters hotel was economically feasible, two studies were conducted in 2000. First, the city commissioned a study by the Chicago firm of C.H. Johnson Consulting. Assuming a 71% occupancy rate and average room rate of $ 215

8904-423: The old convention site. The letter of intent signed by the two sides also made one of Gould's companies, PMI Parking, one of the largest parking lot and parking garage companies in the D.C. metro area, the manager of a parking garage at the new convention headquarters hotel and included late fee payments if the city did not act quickly to finalized the swap. Since the site preferred by Williams was not large enough for

9010-459: The plan, the city would loan Marriott $ 80 million in return for Marriott, Capstone, and Quadrangle raising their equity contribution to $ 320 million from $ 135 million. To obtain the additional equity money, ING Clarion Real Estate Investment was added as a new partner in the project. The higher equity participation meant that Marriott would no longer need to seek private lending as part of the agreement—which meant construction could go forward without

9116-414: The planned hotel and the city-owned lots in the area not contiguous, Gould's land swap created a more unified site with fewer owners. By February 2007, the land swap agreement still had not been finalized. The zoning changes had not occurred, although city officials pledged they were coming. No agreement over parking garage management had been signed, either. The city declined to get involved in operation of

9222-535: The portfolio. The acquisition consists of 21 open hotels and more than 30 future properties under The Standard, Bunkhouse Hotels, Peri Hotels, The StandardX, and The Manner brands. With the transaction, Hyatt will form a new dedicated lifestyle group, managing all lifestyle brands and operations led by Standard International's Executive Chairman Amar Lalvani. Hyatt-branded properties have traditionally catered to upscale or business customers; its properties were either full-service or boutique hotels. In 1980, Hyatt added

9328-425: The potential convention headquarters hotel as well as financing options. On December 3, the WCSA board voted in favor of the Williams site, but said it would continue to study placing a hotel somewhere on New York Avenue NW. WCSA said a third option would be to build the hotel on the northeast corner of the old convention center site. Cropp was unhappy with WCSA's action, and the city council continued to defer action on

9434-399: The price of the land. These negotiations took nearly two years. It was not until December 2006 that the city used its eminent domain powers to secure the land. With council approval of the siting plan complete in June 2005, the council came under pressure to approve the financing package for the convention headquarters hotel. But with little movement on the issue, Marriott and RLJ Development,

9540-399: The project risked breaching the city's voluntary debt cap of 12% of total expenditures. Washington, D.C., had a legal debt limit of 17% of expenditures. To improve the city's dismal bond rating and low interest payments, the city adopted a voluntary debt cap of 12%. Marriott asked for additional public financing in early September 2007. The cost of the facility had risen to $ 750 million, and

9646-419: The project). The plans also called for a tunnel beneath 9th Street NW to link the hotel and the convention center. The commission, which had approval authority over the development, reported favorably on February 4. The same month, WCSA announced the underwriters for its forthcoming $ 187 million bond issue (of which $ 134 million would go toward the hotel). As the recession deepened and the debt crisis worsened,

9752-479: The publicly owned land to Marriott and its partners for 99 years at a cost of $ 37 million. The deal permitted Marriott to build a 1,434-room hotel with 100,000 square feet (9,300 m) of meeting space and 600 parking spaces. Additionally, Marriott would permit WCSA to build a 50,000-square-foot (4,600 m) meeting center on the site. (WCSA said it would finance this center separately from the WCSA bond sale.) Although city chief financial officer Natwar Gandhi doubted

9858-482: The site of the convention headquarters hotel at any time. Further complicating matters was a $ 30 million bid in August 2005 by Philadelphia-based real estate development company Lubert-Adler Management to purchase a 0.5-acre (2,000 m) parcel of land on the corner of 9th Street NW and Massachusetts Avenue NW. This land was owned by a trade union , the United Association of Journeymen and Apprentices of

9964-442: The two sides did agree that the underground portion of the hotel would include a 75,000-square-foot (7,000 m) meeting center that would include at least one ballroom and multiple meeting rooms. The long negotiations were, according to RLJ Development executives, leading to higher costs and could lead Marriott and its partners to ask for more public money. The negotiations did not seem to impede construction, however. Construction on

10070-444: The underground ballroom and meeting space (saving an estimated $ 100 million). Marriott and the city also resolved their dispute over the room set-aside for convention business. This issue had been coming to a conclusion since early 2007, when Mayor Fenty gave Marriott a take-it-or-leave-it offer to reserve 80% of the rooms for the convention center, so long as convention center business was booked three years in advance. Marriott agreed to

10176-845: Was awarded the management contract for the President Hotel in Hong Kong, which was renamed the Hong Kong Hyatt Hotel (later known as the Hyatt Regency Hong Kong). In 1972, Hyatt formed Elsinore Corporation, a subsidiary to operate the Four Queens Hotel and Casino and the Hyatt Regency Lake Tahoe Resort, Spa & Casino. Donald Pritzker died in 1972 and Jay Pritzker continued to run the company. Hyatt became

10282-430: Was chosen because the land parcel size, its location near the convention center, and the land, which was already owned by the partners. City officials said they intended to ask the Council for legislation to establish a nonprofit to sell TIF bonds and own the hotel. Marriott said it would buy $ 24 million of the bonds to create an ownership interest in the hotel, which it said would be built by JBG Smith . To keep interest on

10388-444: Was complete in October 2004. The authority was to vote to accept the consultant's report on October 13, 2004, but delayed the vote after Mayor Williams asked for more time to negotiate a solution. The next day, Cropp, supported by the city's hospitality industry, again suggested that the old convention center site be used for a $ 450 million, 1,500-room convention headquarters hotel. With the two sides seemingly deadlocked, Greg Fazakerley,

10494-465: Was constructing a 2,000-room hotel and meeting complex at its Gaylord National Resort & Convention Center in Prince George's County, Maryland , just across the city line. The Gaylord complex, the Washington Post said, was likely to draw business away from the proposed D.C. convention headquarters hotel. Reviewing these developments, Heywood Sanders, a professor of public administration at

10600-482: Was finally approved by the city council on November 1, 2007. It had taken 22 months to change local zoning regulations so Gould was exempted from building housing on the new site. The city had trouble obtaining title to other pieces of the hotel site as well. Two small parcels on 9th and L Streets NW still remained in their owners' hands in early 2007. Although the city could have used its eminent domain powers (approved in June 2006), it instead engaged in negotiations over

10706-412: Was issuing a request for proposals (RFPs) to build a 1,100-room, $ 200-million convention headquarters hotel near the site of the old convention center. Williams asked private developers to propose privately owned sites for the hotel. If no privately owned site was available, Williams offered to build the hotel on the site of the old convention center, even though a consultant's report said that would limit

10812-495: Was located) both favored the Mariani plan. On July 15, 2004, the two sides reached an agreement to proceed with the existing Williams plan. However, some city council members and WCSA opposed the agreement. Going a step further, WCSA commissioned a study of the old convention center site from the consulting firm Conventions, Sports & Leisure International (CSIL). WCSA said the report would be ready in August 2004. The CSIL report

10918-404: Was more valuable than the city-owned parcel on the northeast corner of the old convention center site (valued at $ 75.9 million). Furthermore, Gould wanted zoning changes made to the old convention center site. City zoning laws required that 200 units of housing be built on the site. Gould wanted guarantees that he would receive a waiver for this regulation. On January 26, 2006, Gould agreed to swap

11024-416: Was opened in 1954 by business partners Hyatt Robert von Dehn and Jack Dyer Crouch as a motel near Los Angeles International Airport . In 1957, the hotel was purchased by entrepreneur Jay Pritzker for US$ 2.2 million . His younger brother, Donald Pritzker , also took on an important role in the company. Considering the growing use of air travel for business, the Pritzker brothers realized that locating

11130-402: Was relatively swift. In June 2006, the council passed the Williams proposal. Only $ 135 million in TIF bonds were approved, but the eminent domain provisions were included as submitted. In November 2006, Adrian Fenty was elected mayor of Washington, D.C., after Anthony Williams declined to seek a third term in office. Fenty was sworn into office in January 2007. Concerns about the viability of

11236-401: Was the smallest property holder and was not providing equity for the project, which led to negotiations to obtain his land. Initially, the city and Gould discussed two options: buying Gould's land outright, or permitting Gould to swap his land for city-owned land elsewhere. The two sides settled on a land swap, but negotiations stalled after Gould argued that his parcel (valued at $ 72.6 million)

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