Mayor Young wants city to buy $22 million downtown hotel

Editor’s note: This story has been corrected to reflect that Chance Carlisle, a member of the development team, is not a City Council member. WREG regrets the error.

MEMPHIS, Tenn. — The Sheraton Hotel on Main Street may have a potential lifeline after Mayor Paul Young said he wants the city to buy the 600-bed hotel.

However, for that to happen the city council would have to give their approval.

While some believe the purchase could be a major win for Memphis tourism, others say the city has bigger priorities that should be addressed first.

“We think it’s an important asset in downtown economic development,” Young said. “Obviously for tourism as a whole.”

Young told WREG that the city would buy the Sheraton for $22 million through issuing bonds and would require Memphis City Council approval.

“We want to make sure that facility continues to have life and vibrancy,” Young said. “(It’s) in a situation right now (where) by the end of the year, it could go dark and we don’t want that to happen.”

Mayor Young and some city leaders say the deal would protect the more than $200 million investment made into the nearby Renasant Convention Center which resurrected that building during the pandemic when there were few tourists.

“It could only be better with a re-imagined and improved convention center hotel,” Kevin Kane said. “That’s what we’re hoping for – adjacent to us with the potential Sheraton being for sale.”

Kane, the president and CEO of Memphis Tourism said that revitalizing the hotel would not only benefit downtown but the whole city.

“We’re hoping somebody will take that property and bring it up to current standards and match what we’ve done on this side of the street – Main Street with the Renasant Convention Center,” Kane said. “If we can do that we’ll see even greater returns for the hospitality industry and the taxpayers of Memphis and Shelby County.”

However, some former city leaders question whether that should be a priority.

“Certainly, I can’t see the government doing particularly well in the hotel business, but in this case, I think they have to,” said former city councilman Frank Colvett. “But again, I think they need more guardrails and safety features as they possibly can.”

“Our transportation (MATA) is hemorrhaging. We’re going to have to cut routes. That’s going to affect people’s ability to get to work and to be productive,” said former city council chairman Martavius Jones. “I just think the city has greater priorities right now.”

Mayor Young said the city could eventually transfer management of the Sheraton to a group of local businesspeople, including Chance Carlisle, brother of City Councilman Chase Carlisle.

Chase Carlisle said in an email that, due to his close familial relationship with one of the developers, he is not participating in any discussion and will recuse from voting on any item related to the matter.

All of these things will be considered as the city council decides if the city should buy the Sheraton Hotel.

Mayor Young plans to ask the council to approve spending $1.5 million in earnest money during Tuesday’s city council meeting.

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