Ray Washburne Wants To Build $800M Hotel Near Dallas Convention Center Project
A prominent Dallas developer plans to build a massive hotel steps away from the Kay Bailey Hutchison Convention Center, which is undergoing a $3.7B overhaul and expansion.
Dallas investor and Charter Holdings CEO Ray Washburne wants to construct an $800M convention center-style hotel that would boast 1,000 rooms as part of his long-planned entertainment district in downtown, The Dallas Morning News reported. Washburne plans to use the DMN’s former campus at 508 Young St., which he purchased in 2019, for the 30-story hotel and entertainment district.
The developer said he has had talks with two major hotel chains about the project but didn’t reveal their identities. The proposed hotel would provide nearby rooms for the convention center. The center's revamp is expected to make the facility more competitive in attracting big events when it is completed in 2029.
However, public participation is key to getting hotel construction underway, Washburne told D Magazine.
Similar convention center hotels built in New Orleans, Nashville and Miami received 20% to 25% support from the municipalities through tax incentives and financing, according to Washburne.
For an $800M hotel, that amounts to $160M to $200M. But debate about the future of City Hall has dominated the attention of Dallas officials, and they have yet to discuss the development with Washburne, he said.
“The city needs 5,000 more rooms,” Washburne told D Magazine. “And I’m the only one even talking about building a new hotel in Dallas.”
City officials did not immediately respond to Bisnow’s request for comment on the matter.
Due to design processes, the earliest the hotel project could begin construction would be a year from now, Washburne said. And he estimated a 30-month construction timeline, meaning the hotel couldn’t open before 2030, a year after the convention center is scheduled to be completed.
“I’m ready to roll,” Washburne said to D Magazine. “But the city needs to step up and engage in conversation for this.”
Washburne bought the former DMN building for $28M and has been outspoken about his desire to work with the city on redeveloping the property. The Dallas City Council approved plans to buy more than 220K SF of the property from Washburne for $51.7M last year.
That parcel will be incorporated into the convention center expansion.
The purchase came after Washburne announced he had reached an agreement to sell the property to an undisclosed data center provider, citing his frustration with the city's lack of communication.
Last week, the Dallas City Council voted to explore options for redeveloping the nearly 50-year-old City Hall. A February report from the Dallas Economic Development Corp. stated that renovations needed to fully restore the building would cost around $906M.
However, vacating the I.M. Pei-designed building hasn’t been decided, as city staff were also instructed to prepare a plan for repairing the structure.
