Loews Hotel | 21 stories, 500 rooms - CANCELED

[JTM1]

52 minutes ago, TheKernel91 said:

Now the question in play... who will buy the land and development something on it. Still prime real estate near the convention center. 

My money is on the Kansas City developer that bid on 100 N Main but didn't get it.  

[James Owen]

2 hours ago, jjbradleyBrooklyn said:

This is a disappointment for sure! 

But it seemed failed to start--with Sheraton flipping out and threatening a lawsuit (or did they actually sue?), as well as the plans for 100 North Main Street falling through, that incorporated the Loews hotel.

I would think Loews could still easily carve out a niche in downtown Memphis. Why don't they look to the Walk site, or over near Beale Street? 

There are many options for Loews to locate in, unless they were dead set on that spot, and now they may just want to move on from Memphis for a while. 

What a shame for real though.

The city was negotiating with Loews and other companies about building a new convention center hotel to compliment the existing Sheraton, and they thought courting a Loews development was in their best interest. It's just that timing, COVID, and a lack of available financing/risk taking on loans made that unfeasible for Loews to pursue a project in Memphis at this time.

The need for another large-scale hotel is still there, and while the Grand Hyatt being planned at One Beale helps, that's roughly ten blocks from the convention center, and convention goers/planners would prefer to have something be closer than that. Whether or not the city decides to put new proposals up for bid in the near future (along Civic Center Plaza or on another site in close proximity) remains to be seen as their focus is primarily on the redevelopment of 100 North Main right now.

Edited February 9, 2022 by James Owen

[Memphisborn]

3 hours ago, JTM1 said:

My money is on the Kansas City developer that bid on 100 N Main but didn't get it.  

Your talking about this group. Block Sunflower 
 

https://downtownmemphis.com/wp-content/uploads/2022/01/5.-Block-Sunflower_100-North-Main_Redevelopment-Proposal.pdf

[dxfret]

This is yet another setback in the decades-long struggle to jumpstart new development downtown. Large scale new development is very weak in Memphis.  The banks and large firms have plenty of money to invest (just look at other cities) they always seem to avoid Memphis for major projects and it’s not Covid related. Instead, all that happens is of small scale and of mediocre design and quality.  What causes these projects to never materialize in Memphis?

[DRG901]

2 hours ago, dxfret said:

This is yet another setback in the decades-long struggle to jumpstart new development downtown. Large scale new development is very weak in Memphis.  The banks and large firms have plenty of money to invest (just look at other cities) they always seem to avoid Memphis for major projects and it’s not Covid related. Instead, all that happens is of small scale and of mediocre design and quality.  What causes these projects to never materialize in Memphis?

Ok 

 

Why did the Loews deal collapse? Company cites market difficulties - Memphis Local, Sports, Business & Food News | Daily Memphian

 a statement from president and CEO Alex Tisch cited pandemic-based challenges for the decision to not move forward with the Memphis deal. 

“We love Memphis, the people and the destination,” Tisch said. “The pandemic put challenges on the hotel market and the lending market, making the economics of our proposed transaction remarkably difficult. Our hope is the future will allow us to look at new transactions in Memphis, although the timeline is undefined.”

[VSRJ]

2 hours ago, dxfret said:

This is yet another setback in the decades-long struggle to jumpstart new development downtown. Large scale new development is very weak in Memphis.  The banks and large firms have plenty of money to invest (just look at other cities) they always seem to avoid Memphis for major projects and it’s not Covid related. Instead, all that happens is of small scale and of mediocre design and quality.  What causes these projects to never materialize in Memphis?

I'd like to direct you to the Downtown Memphis Commission's development database: https://downtownmemphis.com/develop-invest/current-projects-database/

You've made your anti-Memphis stance very clear. We all know. I'd challenge you to find something you like about the city. Otherwise, I'm not sure why you're participating in the discussions.

[dxfret]

The question about why large scale, high profile development projects rarely happen in Memphis has not been answered.  The Downtown Memphis Commission database is comprised of mostly small projects.  Loews Corporation and the Tisch organization have tons of money and are actively investing with large hotel projects now under construction in Arlington, Texas, Miami and Kansas City.  They are using the pandemic and market conditions as a reason to opt out of the Memphis market. The question remains WHY?

Edited February 9, 2022 by dxfret

[JTM1]

17 hours ago, Memphisborn said:

Your talking about this group. Block Sunflower 
 

https://downtownmemphis.com/wp-content/uploads/2022/01/5.-Block-Sunflower_100-North-Main_Redevelopment-Proposal.pdf

That's the one.  According to an article in the Commercial Appeal, they were encouraged to partner, with Billy Orgels development group, on the redevelopment of 100 N Main. 

Edited February 9, 2022 by JTM1

[JTM1]

3 hours ago, dxfret said:

The question about why large scale, high profile development projects rarely happen in Memphis has not been answered.  The Downtown Memphis Commission database is comprised of mostly small projects.  Loews Corporation and the Tisch organization have tons of money and are actively investing with large hotel projects now under construction in Arlington, Texas, Miami and Kansas City.  They are using the pandemic and market conditions as a reason to opt out of the Memphis market. The question remains WHY?

Once again, you're repeating information that just isn't true. Loews broke ground on their Miami  hotel in 2020, and they officially opened the Kansas City property in 2020, just as the pandemic started. The funding was already in place. 

How many accounts do you have?  You were here yesterday asking about the Walk development under another name. The Walk is still ago. Matter of fact, the developer of the  Walk  has a 90 million dollar senior living development, in East Memphis, presently under construction. 

 

[MDC26]

On 2/8/2022 at 3:52 PM, jjbradleyBrooklyn said:

This is a disappointment for sure! 

But it seemed failed to start--with Sheraton flipping out and threatening a lawsuit (or did they actually sue?), as well as the plans for 100 North Main Street falling through, that incorporated the Loews hotel.

I would think Loews could still easily carve out a niche in downtown Memphis. Why don't they look to the Walk site, or over near Beale Street? 

There are many options for Loews to locate in, unless they were dead set on that spot, and now they may just want to move on from Memphis for a while. 

What a shame for real though.

Sheraton did actually sue, but it was quickly dismissed. If Loew’s isn’t going to use this site, they aren’t going to look at another one. It’s not the site that the problem, it’s them either deciding, or not getting the funding to do a project at all in Memphis. 

 

On 2/8/2022 at 4:24 PM, DRG901 said:

This is true and I wondered all along if the split with Townhouse leaving 100 N Main vacant and blighted could hurt the chances of this-- I still think Covid and financing was the killer but if/when 100 N Main gets developed that only makes this land more valuable.  As well as the numerous surface lots east of it for long term growth.   

I don’t think splitting with TH and them abandoning 100 N Main factored in at all. I think it was all COVID. Lesslending, lower hotel occupancy rates, higher construction costs were likely all factors that killed this project. 
 

On 2/8/2022 at 4:36 PM, DRG901 said:

I saw on this forum they did with the Daily Memphian (swear it was posted somewhere on here) that they were looking at another site "closer to the entertainment district" they could build this at instead of the Pinch...  I immediately guessed the Clipper site (I'll assume that's dead at this point too).   That'd be good close to the arena but maybe they'll look at this site too.

Yes, you are correct. I posted that they mentioned in the forum that they were also looking at other sites. I can’t remember if it was for the Blues Note project or the Beckford project. That group has purchased the land where the Blues Note is planned, but the site they wanted for the Beckford is owned by the city and is part of Intrator’s Pinch plan. The Blues note could very well happen, but I doubt the 50+ story Beckford project will happen

[MDC26]

9 hours ago, dxfret said:

The question about why large scale, high profile development projects rarely happen in Memphis has not been answered.  The Downtown Memphis Commission database is comprised of mostly small projects.  Loews Corporation and the Tisch organization have tons of money and are actively investing with large hotel projects now under construction in Arlington, Texas, Miami and Kansas City.  They are using the pandemic and market conditions as a reason to opt out of the Memphis market. The question remains WHY?

Because Memphis isn’t as big or as hot of a market as Dallas, Miami, Nashville, or Austin. The amount of population growth, tourism numbers, market rates, and local economy is all bigger in those cities. Economic factors negatively effect cities like Memphis that aren’t as resilient as the aforementioned ones.  Do you go to St Louis, Louisville, or Birmingham boards and ask them why they don’t have a dozen cranes up in their downtown too?

[Memphis4ever]

14 hours ago, dxfret said:

The question about why large scale, high profile development projects rarely happen in Memphis has not been answered.  The Downtown Memphis Commission database is comprised of mostly small projects.  Loews Corporation and the Tisch organization have tons of money and are actively investing with large hotel projects now under construction in Arlington, Texas, Miami and Kansas City.  They are using the pandemic and market conditions as a reason to opt out of the Memphis market. The question remains WHY?

There is one materializing right up the street of equal quality called the Grand Hyatt, 20 stories building permit for the foundation already filed.  Some forget the brooks museum, the mobility center and the new development on South 3rd Street and the Vance avenue apartments under construction   If you mean y'all buildings that's another story, Memphis does not have a large corporate presence downtown that tends to bring larger developments.  Also our affordability means developers have a hard time charging our justifying the outrageous hotel or rental rates they would seem necessary.  I fully believe once the grand hyatt gets underway other chains will look and feel more comfortable investing in larger hotels

[dxfret]

Kevin Kane, CEO of Memphis Tourism, clearly deserves much of the blame for years of ongoing failures in promoting the city, tourism and conventions.  Kane has been in the same role for nearly 30 years and the organizations he has led have produced few results.  Memphis Tourism has an extremely large staff.  Kevin Kane was also a principal in downtown and Beale Street businesses that were obvious conflicts of interest.  In the current Business Journal article he’s scrambling to try and spin the Loews hotel debacle.  Memphis deserves far better leadership.  It’s long past time to dump the same crowd of “good ole boys”.  It’s quite plausible that Loews Corporation and the Tisch family recognized this and it may be a factor in canceling the planned hotel.  Memphis needs new and better leadership.  

Edited February 10, 2022 by dxfret

[Memphisborn]

2 hours ago, dxfret said:

Kevin Kane, CEO of Memphis Tourism, clearly deserves much of the blame for years of ongoing failures in promoting the city, tourism and conventions.  Kane has been in the same role for nearly 30 years and the organizations he has led have produced few results.  Memphis Tourism has an extremely large staff.  Kevin Kane was also a principal in downtown and Beale Street businesses that were obvious conflicts of interest.  In the current Business Journal article he’s scrambling to try and spin the Loews hotel debacle.  Memphis deserves far better leadership.  It’s long past time to dump the same crowd of “good ole boys”.  It’s quite plausible that Loews Corporation and the Tisch family recognized this and it may be a factor in canceling the planned hotel.  Memphis needs new and better leadership.  

I agree with your sentiment for new leadership.  Paul young IMO was a good hire for DMC and I believe he will work to create changes in downtown development. Kevin Kane needs to be replaced with someone with fresh ideas 

[jjbradleyBrooklyn]

16 hours ago, Memphis4ever said:

There is one materializing right up the street of equal quality called the Grand Hyatt, 20 stories building permit for the foundation already filed.  Some forget the brooks museum, the mobility center and the new development on South 3rd Street and the Vance avenue apartments under construction   If you mean y'all buildings that's another story, Memphis does not have a large corporate presence downtown that tends to bring larger developments.  Also our affordability means developers have a hard time charging our justifying the outrageous hotel or rental rates they would seem necessary.  I fully believe once the grand hyatt gets underway other chains will look and feel more comfortable investing in larger hotels

Excited to see the 20 story Grand Hyatt rise up. It will make a pretty dominant statement right on the river there, and add to the skyline there, extending height south a bit more.  Memphis does have a lot of new development and redevelopment going on to be excited about. 

I look forward to seeing the Walk develop!

[DowntownUrbanite]

The City and Memphis Tourism should immediately reissue the RFP for the convention center hotel. The latest most pedestrian friendly design from Loews with the Valet area moved to the side where the sunken plaza is located and the Main Street frontage composed of lobby and restaurant space should be included in the RFP to show an example of good urban design. I also believe that the reopening of Main Street proposed by Loews as well as 100 N. Main is essential to reactivating Main Street north of Jefferson Avenue which is today a blighted and a public safety hazard.

This gets me to my next point, I agree that the City has many leadership issues. We must have leadership that aggressively tackles the root of our market problems which  create issues with financing larger projects such as the Loews. Leadership must make public safety the Number 1 Priority as any financial institution who walks down that section of Main Street will identify many problems that jeopardize the long term success of a major convention hotel.  There is criminal activity which endangers local residents and would terrorize those who are unfamiliar with the issues that challenge our City. There is also litter, blight, neglect, vandalism, substance abuse, public urination/defecation, mental illness, a homeless encampment, and even occasional protests. 

Imagine a meeting planner touring the beautifully restored convention center. How do you believe they feel when they step outside, unnerved and unsafe. Until the issues in the area are addressed, the Renasant Convention Center will struggle to lure conventions. A hotel the caliber of Loews would have helped as will the redevelopment of 100 N Main, but the leadership must also make a commitment to clean up the area. 
 

 

Edited February 12, 2022 by DowntownUrbanite
Typo

[Memphisborn]

On 2/11/2022 at 12:45 PM, DowntownUrbanite said:

The City and Memphis Tourism should immediately reissue the RFP for the convention center hotel. The latest most pedestrian friendly design from Loews with the Valet area moved to the side where the sunken plaza is located and the Main Street frontage composed of lobby and restaurant space should be included in the RFP to show an example of good urban design. I also believe that the reopening of Main Street proposed by Loews as well as 100 N. Main is essential to reactivating Main Street north of Jefferson Avenue which is today a blighted and a public safety hazard.

This gets me to my next point, I agree that the City has many leadership issues. We must have leadership that aggressively tackles the root of our market problems which  create issues with financing larger projects such as the Loews. Leadership must make public safety the Number 1 Priority as any financial institution who walks down that section of Main Street will identify many problems that jeopardize the long term success of a major convention hotel.  There is criminal activity which endangers local residents and would terrorize those who are unfamiliar with the issues that challenge our City. There is also litter, blight, neglect, vandalism, substance abuse, public urination/defecation, mental illness, a homeless encampment, and even occasional protests. 

Imagine a meeting planner touring the beautifully restored convention center. How do you believe they feel when they step outside, unnerved and unsafe. Until the issues in the area are addressed, the Renasant Convention Center will struggle to lure conventions. A hotel the caliber of Loews would have helped as will the redevelopment of 100 N Main, but the leadership must also make a commitment to clean up the area. 
 

 

Very Nice design.  I would hope DMC and city would work quickly to bring in another developer for that same site. One thing to consider is that maybe Sheraton would consider a build out on that site. They expressed interest in building and additional 300 room JW Marriott one of the issues was land size and acquisition of an adjacent lot. This site on civic plaza is now available so opting to build there could be less complex only thing is they need to go from 300 to 500-600 but a JW Marriott would be amazing right there and also the first in city. Maybe Lowes could do a different Lowes live! Type hotel 300 rooms in another location like the MLGW site if the city can ever get the ball moving on relocating them. 
 

Edited February 12, 2022 by Memphisborn

[Memphis4ever]

Why is this a topic projects late hey canceled in all cities especially with our circumstances. This page is about positive discussions we all understand Memphis has issues but none of these were responsible for this hotel not moving forward this hotel was based off large conventions and with the current economics they don't believe we will have enough for such a large hotel is ok let's let it go and move forward. Not to mention that site is very difficult as there are underground parking garages a trolley and a historic building.