District of Columbia: Marriott to Build $537 Million Marriott Marquis on Massachusetts Avenue
Issue date: 8/23/09 Section: Neighborhood
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"This is going to be a first-class facility and its development will ensure the District remains a top-tier destination for the meetings and convention industry," said Mayor Fenty. "At the same time, this is a shovel ready project that will provide hundreds of new jobs and spur new investment in the Shaw community."
The District's $5 billion hospitality industry is critical to the city's economic health. It employs more than 70,000 people and generates more than $600 million dollars in annual tax revenue. The convention center hosts about a million visitors a year and generates about 500,000 hotel room nights. The hospitality industry has long advocated for the development of a headquarters hotel next to the convention center as a means of improving the facility's competitive position. A large hotel near the center gives meeting planners the ability to book large blocks of rooms in one place, minimizing transportation requirements.
Last month, the District of Columbia Council unanimously approved legislation that authorizes the District and the Washington Convention Center Authority (WCCA) to provide $206 million in financing for the project. Marriott and its development partner will build a 14-story hotel on a two-acre site at Ninth Street and Massachusetts Avenue NW. The District-sponsored portion of the financing for the project will be repaid over time using tax revenue generated by the hotel. The new hotel will include 100,000 square feet of additional meeting space and about 400 new parking spaces. The District and Marriott have also executed a room block agreement, which will allow groups to reserve up to 80 percent of the rooms when making advance bookings.
"The convention center hotel project has become a wonderful example of effective District government at work - with the unwavering support of the mayor and the tremendous effort of the council, we are poised to break ground this fall on this vital project for the District," said WCCA CEO Gregory A. O'Dell. The project will produce more than 1,150 jobs during 40 months of construction. Marriott will hire about 1,000 people to work in the hotel permanently. The company has agreed to fill at least 51 percent of those new jobs with District residents and work closely with certified local, small and disadvantaged businesses. The development team expects to break ground on the hotel project this fall and it is expected to be complete in 2013.
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