WPI's Plan to Purchase Hotels for Student Housing Sparks Criticism from Worcester Leaders

Photo byRick Cinclair

Worcester, MA — Worcester Polytechnic Institute (WPI) is facing significant backlash from Worcester’s business and political leaders over its proposal to acquire and convert two local hotels into student housing. This move, they argue, could undermine the city’s economic development efforts and disrupt the goals of the multimillion-dollar Gateway Park Project.

The hotels in question are the Hampton Inn & Suites at 65 Prescott St. and the Courtyard Marriott at 72 Grove St., both of which are integral to the Gateway Park Project. This project, backed by approximately $170 million in public and private funding, aimed to revitalize contaminated lands and repurpose old industrial buildings into a mixed-use development. It includes WPI’s 125,000-square-foot Life Sciences and Bioengineering Center.

In a letter sent on Friday to WPI President Grace Wang and the chair of the institute’s board of trustees, Worcester’s Economic Development Coordinating Council expressed strong disapproval of WPI’s plans. The letter, signed by Mayor Joseph M. Petty, City Manager Eric D. Batista, and Tim Murray, President and CEO of the Worcester Regional Chamber of Commerce, highlights several key concerns:

1. Economic Impact: The acquisition could lead to a loss of $780,000 in annual local property taxes and over $850,000 in hotel/motel tax revenue. Additionally, closing these hotels would eliminate 100 jobs and reduce Worcester's hotel room capacity by 25%, affecting the city's ability to host business and entertainment events.
2. Impact on Gateway Park: The letter emphasizes that the Gateway Park Project was designed to enhance the city’s tax base and support economic development, not to facilitate WPI’s campus expansion. The move is seen as counterproductive to the project's goals, which include job creation and economic growth.
3. Future of Local Biotech: The potential conversion of these hotels into student housing further constrains available land for local biotech companies, which are crucial to Worcester’s economic landscape. This adds to existing concerns about limited space for biotech expansion.

City Manager Batista and other officials expressed their dismay, stating that the hotel industry is vital to Worcester’s economy. The city's budget relies heavily on tax revenues from hotels, which support essential municipal services, including public safety and education.

Despite these objections, WPI has continued with its plans, including using $26 million in state-issued bonds for the purchase and renovation of the Hampton Inn & Suites. The Worcester Historical Commission is also reviewing the proposal in light of its implications for 65 Prescott St.

The controversy has led to calls for WPI to reconsider its strategy, especially since the institute already has existing student housing options within the Gateway Park area and other potential development plans.

In summary, Worcester's leaders are urging WPI to align its actions with the original intent of the Gateway Park Project and to engage more collaboratively with the community to address the broader implications of its acquisition plan.