Image rendering of the Omni Hotel provided by the Ernest N. Morial Convention Center

City Council Advances Zoning for Omni Hotel

By Kelly Hite

June 25, 2026

NEW ORLEANS – The New Orleans City Council voted unanimously on June 24 to advance plans for the proposed 1,000-room, 27-story Omni hotel near the Ernest N. Morial Convention Center. Council members directed the City Attorney’s Office to draft zoning changes needed for the project, which is being developed by Dallas-based Omni Hotels & Resorts.

Although the zoning changes still require final approval, Convention Center President and CEO Jim Cook said the project is shovel-ready and poised to move toward construction.

“The Omni New Orleans project is shovel-ready, and today’s approval allows us to move confidently toward construction start in the near term,” Cook said.

Walter J. Leger III, president and CEO of New Orleans & Company, echoed Cook’s assessment, saying the project would strengthen New Orleans’ position as a destination for major meetings, conventions and events.

“We are grateful to the New Orleans City Council for their support of the Omni New Orleans Headquarters Hotel project. The leadership of Council President Morrell and Vice President Willard was critical in securing today’s unanimous vote to move the project forward,” said Leger. “This $600 million investment in our community will create jobs, add millions to the state and local economy and strengthen New Orleans’ position as a leading destination for the world’s most complex and important meetings, conventions and events.”

Public Incentives Remain Unresolved

The proposal remains controversial because the substantial public incentives sought by Omni have not been finalized. The company is pursuing a Payment In Lieu of Taxes (PILOT) agreement with the city, approximately $265 million in state sales tax breaks over 45 years and a rebate of hotel taxes collected by the Louisiana Stadium and Exposition District.

A report by the Bureau for Governmental Research (BGR) estimated the project could receive more than $940 million in gross public support over 45 years and approximately $669 million in net subsidies after rent payments to the convention center are considered. BGR also found the hotel would require subsidies to meet its targeted return for about 11 years rather than the full 45-year period sought by developers, raising questions about the scope and duration of the proposed incentives.

Earlier on June 24, before advancing the zoning changes, the New Orleans Exhibition Hall Authority Economic Growth and Development District, which oversees the hotel’s development area, approved a resolution during a special meeting related to the project. In coordination with City Council leadership, the agreement included commitments related to local hiring, property tax payments comparable to certain peer hotels and participation in small and emerging business opportunities.

Council members also sought stronger accountability measures, including protections for the school board’s share of property taxes, disadvantaged business requirements, job-performance standards and enforcement mechanisms if Omni fails to meet its commitments. Those efforts mirror many of the safeguards highlighted by BGR, and the provisions and other incentive requests remain subject to additional approvals.

Although council members voted unanimously to advance the zoning process, several said stronger safeguards are needed before public incentive agreements are finalized.

Council President JP Morrell said the city is working to secure greater protections for taxpayers and publicly criticized Omni representatives over negotiations involving school board property tax revenues, saying the city had to push for provisions that would preserve those revenues.

Labor Groups Raise Concerns

Labor and community groups opposed the tax incentives during the June 24 proceedings, arguing public funds should be prioritized elsewhere and questioning whether the project would provide wages and benefits sufficient to improve economic security for hospitality workers.

Some from the hospitality industry also expressed concern that a new convention headquarters hotel could draw employees away from existing hotels and intensify staffing challenges for older or smaller properties.

Omni Supporters Cite Competitiveness

Representatives of the convention center, tourism organizations, economic development groups and Omni supporters argued the hotel is needed to attract major conventions and events and maintain New Orleans’ competitiveness as a destination, saying additional visitor demand would benefit the broader hospitality industry.

“District B Councilmember Lesli Harris, in whose district the project resides, has long recognized that this hotel is a transformational and catalytic win for New Orleans and a massive step forward in growing the economy of our city and state, and we are grateful for her leadership and partnership. Peer cities are investing aggressively in their tourism infrastructure, and with this approval, we will ensure New Orleans continues to compete at the highest level,” said Leger.

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