The Bureau of Governmental Research (BGR) released a report today presenting several ways in which the New Orleans Ernest N. Morial Convention Center can restructure the public subsidies for its convention headquarters hotel project to save substantial tax dollars. And it can do so without jeopardizing this long-sought project to boost convention business and the regional economy.
The Convention Center hopes to finalize a deal in March 2026 for Omni Hotels to build a $600 million, 1,005-room convention headquarters hotel. The Convention Center has pursued this project for more than a decade to attract new conventions, increase attendance and remain competitive with other cities, many of which have added such convention hotels. The new upscale hotel would be the fifth largest hotel in New Orleans, and the first one with at least 1,000 rooms to be built in the city in more than 40 years.
In its report, BGR acknowledges the hotel’s strategic importance and does not oppose the project. However, the report raises concerns about the structure and size of the public subsidies, particularly an estimated $836.7 million that Omni would receive over 45 years from taxes paid by hotel guests. The report shows how these tax rebates could continue for decades after they are no longer needed for Omni to hit its profit target. BGR offers four options to reduce the public contributions by about half a billion dollars. These new options would save substantial public resources for other pressing needs while having little or no impact on Omni’s profits.
“In short, BGR’s independent analysis finds several ways for the Convention Center to achieve a better financial structure for the public in the hotel deal,” said Rebecca Mowbray, BGR president and CEO. “We urge the Convention Center, as well as State and City officials who must still approve the subsidies, to carefully consider these options to reduce the public’s long-run costs.”