Editorial: New Orleans City Council should give zoning changes for new convention hotel a thumbs-up

By Staff Editorial

Source: The Times-Picayune | NOLA.com

June 17, 2026

Cities around the country are making big investments in their convention centers and nearby environs, the better to compete for lucrative large meetings. But perhaps no other city is as dependent on these events as tourism-reliant New Orleans.

So when officials at the Ernest N. Morial Convention Center and their supporters in the business community argue that the huge Omni headquarters hotel planned for across the street simply has to happen, we agree. Building the city’s first new major hotel in decades, with more than 1,000 rooms, ample meeting space and easy access to the convention center, is key to keeping up with the ever-more-cutthroat competition to host the biggest business gatherings, not to mention future major sporting events, such as Super Bowls.

As always with these major projects, though, the devil can be in the details — in this case a long list of needed approvals from various government entities.

The project can clear one major hurdle Thursday, when the New Orleans City Council is scheduled to vote on a zoning overlay district that would legalize the hotel’s planned 346-foot height and establish other design standards. We urge the council to approve this key step.

But there’s still much negotiating to come. Developers are asking the city for a PILOT, or payment in lieu of taxes. And other parts of the financing package have been met with understandable questions.

The Bureau of Governmental Research, which does not oppose the development, argues that there are alternatives to the estimated $836.7 million the Omni could receive from room tax rebates that would not substantially eat into the hotel’s profit. BGR notes that the 45-year timeline for public subsidies is outside the norm for such projects — Omni typically receives 20 to 25 years of tax rebates for convention hotels — and that the rebates in later years would not be necessary to meet the project’s profit goals.

Lawmakers in Baton Rouge seem to have similar concerns and have balked at approving the state segment of the hotel tax incentive. “It’s created a lot of questions, and I use the word ‘angst,’ with legislators,” state Rep. Jack McFarland, vice chair of the Joint Legislative Committee on the Budget, said.

Also still under discussion is a request that the Louisiana Stadium and Exposition District rebate its 4% hotel tax on rooms. The concern there is how the deal would impact the LSED’s ability to borrow for other projects.

Convention center officials point out that the revenue that would be diverted wouldn’t exist if the hotel weren’t built. Still, we encourage all parties involved to find the best possible deal for the taxpayers in time to start construction before the Mississippi River’s seasonal rise would force a monthslong delay.

The new hotel would be one of the most transformative projects the city has undertaken in years. It’s time to work through the details and get the process started.

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