The additional inventory could also allow the convention center to host events with as many as 2,500 attendees, approximately double what it can currently accommodate. Felix Mizioznikov for Adobe Stock
In a 6-1 vote on Sept. 29, Palm Beach County commissioners approved a $26 million agreement with Related Ross, clearing a key hurdle for a second headquarters hotel next to the Palm Beach County Convention Center in downtown West Palm Beach, Fla.
The proposed 18-story, 400-room Curio Collection by Hilton would be built on a parking lot next to the existing 400-room Hilton West Palm Beach, bringing the combined room count adjacent to the convention center to 800. Beyond the additional rooms, plans call for meeting and function space, a pool and several dining concepts, including a rooftop restaurant. The project, estimated at roughly $290 million to $300 million, would be financed by Related Ross.
Under the agreement, the county would acquire the property and completed hotel, then lease it back to Related Ross under a long-term arrangement. The developer would build and operate the hotel.
More rooms, bigger meetings
For Palm Beach County, another 400 hotel rooms could make a serious difference when competing for larger meetings and conventions.
Before the Hilton West Palm Beach opened in 2016, the county struggled to attract large national events. "As soon as planners knew that the headquarters hotel was coming, the conversations changed," Palm Beach County Convention Center general manager Dave Anderson said.
Nearly 11 years later, officials say the destination still doesn't have enough hotel rooms within walking distance of the convention center to compete for larger groups. County staff cited an estimated 20,000 room nights and roughly $15 million in economic impact lost to events that went elsewhere. Officials estimate adding the second hotel could increase the convention center's economic output by 57 percent.
The additional inventory could also allow the convention center to host events with as many as 2,500 attendees, approximately double what it can currently accommodate.
"The first hotel was a game changer," Anderson said. "I believe the second hotel is an opportunity to take the success to another level."
Convention center expansion could follow
A second hotel could lead to a larger Palm Beach County Convention Center down the road, too. The 350,000-square-foot facility was designed to accommodate future growth and could eventually expand to approximately 750,000 square feet. County officials expect preliminary renderings for the potential expansion to go before commissioners by next summer.
Mixed reviews
Not everyone is sold on the deal, though. Residents have questioned the approval process, including the decision to add the agreements to the commission's agenda as an emergency item. Commissioner Gregg Weiss, who cast the lone dissenting vote, questioned the county's long-term financial projections.
That said, officials are adamant that the benefits of the new hotel would extend far beyond the convention center. The hotel and additional visitor activity are expected to support about 650 permanent jobs, including roughly 255 at the hotel and 400 tied to increased visitor spending.
Further, the deal would initially bring the county approximately $1.825 million annually in hotel and parking rent, with 3 percent yearly increases. Palm Beach County would also receive a share of hotel revenue once certain thresholds are met.