Memphis Moves Forward with Sheraton Hotel Purchase, Aims for First-Class Experience
Memphis is buzzing with news about the potential renovation of the largest hotel in the city — the Sheraton Memphis Downtown. It’s all part of a bigger picture to enhance the experience for visitors and bolster the city’s economy after the stunning, four-year transformation of the Renasant Convention Center, which underwent a whopping $200 million renovation.
An Ambitious Plan on the Table
To keep the momentum going, the City of Memphis is making a bold move by planning to purchase the Sheraton for $22 million, pending City Council approval. Mayor Paul Young has shared that the plans for redevelopment might escalate to around $170 million. This investment is being seen as a crucial step in providing the city with a first-class hotel right next to its already successful convention center.
Why Does This Matter?
Kevin Kane, president and CEO of Memphis Tourism, emphasizes that the city needs a quality hotel, ideally located next to the convention center, to attract more high-caliber conventions. He noted, “a first-class quality hotel attached to a first-class [Renasant] Convention Center…can only result in greater economic benefit for Memphis and Shelby County.” He believes that this could generate more tax revenue, benefitting the entire community.
Challenges and Hurdles
Kane candidly mentions how difficult it has been to bring hotels with over 400 rooms to Memphis without “public incentives or public support.” He explained that the effort to renovate the Sheraton is almost like building a brand-new hotel due to the extensive work required. While the current owner, Hotel Memphis LP, purchased the property back in 2017, they haven’t succeeded in elevating its status.
Previous attempts for the city to secure a convention hotel have seen roadblocks, such as proposals for the Loews Hotel and the Grand Hyatt that didn’t come to fruition. However, experts like Chuck Pinkowski from the hotel consulting firm Pinkowski and Co. argue that the City’s involvement makes perfect sense. He pointed out that national hotel companies aren’t inclined to invest in the Sheraton; they prefer to manage it rather than take on ownership.
Drawing Inspiration from Other Cities
Looking beyond Memphis, Kane also cited cities like Birmingham, which owns two hotels near its convention center, and Denver, which has a Grand Hyatt adjacent to its Colorado Convention Center. These examples underline the trend of cities taking ownership to ensure their conventions have adequate accommodations.
The Potential Benefits for Memphis
If the renovation project for the Sheraton comes to life, it’s expected to attract more officials and organizations looking to host events in Memphis. Kane acknowledged that the lack of a high-quality convention center hotel has been a setback, not just for the Sheraton but for other hotels in the Downtown area, including the well-known Peabody Hotel.
“We’ve had some high-yielding, quality conventions…when they would tour what would be our Convention Center headquarters hotel, and they said, ‘Oh boy, that doesn’t meet our standards or doesn’t meet our needs,’” Kane lamented.
A Bright Future?
If this project is successful, it could unlock all of the potential that the Renasant Convention Center has to offer, leading to enhanced recognition as a destination for conventions and events. “It all makes a lot of sense. I think it’s a good thing,” Kane concluded, reflecting the optimism surrounding this initiative.
As Memphis works towards creating an environment that welcomes more visitors and events, the proposed redevelopment of the Sheraton may very well be a turning point for the city’s tourism and hospitality industry.
