(Opinion) Editorial: Why New Orleans needs an official convention center hotel

By Staff Editorial

Source: The Times-Picayune | Nola.com

February 22, 2024

The idea of having an official convention hotel right next to the Ernest N. Morial Convention Center has been around for many years. There have been several concepts and plenty of pro and con arguments. Now there’s an updated concept supported by New Orleans business, convention center and tourism leaders who say without it we won’t stay competitive with other cities that offer on-site rooms to organizations choosing convention locations, often several years in advance.

We agree. The time is now.

Last month, Convention Center CEO Michael Sawaya told our editorial board that building a new hotel next to the 1.1 million-square-foot facility that sits along the Mississippi River in downtown New Orleans is a priority. The massive facility holds many conferences, conventions and meeting annually, drawing hundreds of thousands to the city and state.

The convention center is owned by the State of Louisiana. That makes it important to all who live, work and pay taxes in the state.

Critics of previous “headquarters” hotel pitches have argued that tax breaks were not justified and lease terms were not beneficial.

As 2020 ended, a 1,200-room hotel proposal did not move forward amid a significant slowdown of hotel room nights sold during the COVID pandemic. The Bureau of Governmental Research said then that the deal would be trading off too much value in sales tax rebates and the project would be a direct competitor with existing hotels.

The government watchdog organization made some good points. Still, New Orleans is a massive draw to would-be conventioneers for its atmosphere and hospitality. We cannot allow the lack of a headquarters hotel to cut into the city’s natural advantages.

According to convention center officials, the facility averages between 125 and 130 events annually. There are 93 events booked this year, and 313 events are set between now and 2030. Some events are scheduled as far out as 2042.

Those numbers can be higher with a headquarters hotel that groups want to stay in. It would also make guaranteeing enough hotel rooms are available for events easier and provide convention attendees with more of a community while they are here. We don’t believe it will prevent them from deciding when they want to walk around Canal Street, the Central Business District or the French Quarter and whether they want to take a ride-share to Algiers, Gentilly or Uptown.

BGR made some excellent points about matters that must be addressed before making such a hotel a reality, including the impact on other area hotels. BGR has said such a project would be better financed directly by the convention center, and it should not offer too much in sales tax rebates.

We cannot afford to give the hotel away.

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