Worcester News

Make the016.com a preferred choice with Google by clicking here Google Preferred Source Badge


WPI: School, city reach agreement on hotel purchases

  • Posted by Worcester News November 15, 2024 - Filed in News - #wpi  #housing  #City of Worcester  #hotels  #Gateway Park  - 2,766 views


    Google

    WORCESTER — Worcester Polytechnic Institute and the City of Worcester have finalized an agreement regarding the university’s $46 million acquisition of two Gateway Park hotels. The deal aims to address student housing needs while ensuring continued economic contributions to the city.

    Under the agreement, according to an update from WPI, the Hampton Inn will be converted into student housing by 2026. To mitigate tax revenue losses, WPI will make payments equivalent to pre-conversion property and occupancy taxes until 2029, after which voluntary payments will continue at a reduced rate through 2034.

    The Courtyard Marriott will remain a hotel through at least 2030, maintaining lodging capacity for Worcester.

    This plan reflects WPI’s commitment to supporting students and enhancing Worcester’s community vitality, the school said in a release.

    The city’s tight housing market, with a vacancy rate of 1.7%, has made affordable housing increasingly scarce. WPI argues that the hotel conversions will alleviate pressure on the local housing market by freeing up rental properties for families.

    The agreement also reinforces collaboration between WPI and Worcester, including joint efforts to develop Gateway Park and the launch of an Academic Civic Collaborative to complete city-identified projects.

    However, the purchase has faced criticism from local officials, including Worcester Regional Chamber of Commerce President Timothy Murray, who raised concerns about its potential impact on the city’s hotel market and tax revenue.

    Despite opposition, WPI emphasized the purchase’s long-term benefits, including increased affordable housing, student support, and continued economic contributions. The university’s annual Payment In Lieu of Taxes (PILOT) program currently contributes over $815,000 to the city, with an expected total of $18 million by 2034.

Announcements