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This week, I want to share more about a discussion item we brought before City Council on Tuesday. The discussion centered around an innovative and strategic solution for the City of Memphis to purchase the Sheraton Hotel.
Let me begin by saying that my commitment to you - and to making our city stronger for you - is the guiding principle that drives me and the work of our entire team.
If we bring any item before Council, it is only after careful consideration and much internal deliberation. Our primary goal with every decision is to create a better Memphis.
I want to emphasize that this acquisition is not just about ownership; it is about maximizing opportunities for our city's growth and prosperity. We recognize that there may be short-term challenges, but we are confident in the long-term benefits that this investment will bring to Memphis. If approved, we remain dedicated to transparency and accountability. We are committed to engaging in open dialogue with our city's leadership and residents throughout this process.
The Convention Center Hotel proposal is innovative; it will potentially return multiple millions of dollars in proceeds to the City within two years; it is good for Memphis.
 The Initial Problem We Are Trying to Solve
This is a complicated issue. Our Convention Center Hotel plays a singularly unique role in the economic stability of our downtown, entertainment district, and, indeed, our entire city. It isn’t just another hotel. Its location and size make it a key component in our tourism infrastructure. It is the third highest generator of Hotel/Motel Tax revenue, which supports not only the convention center but also FedExForum - home to the University of Memphis Tiger Basketball and the Memphis Grizzlies - and Memphis Tourism. Additionally, the sales tax generated goes to our general fund, which supports community programs and initiatives in every neighborhood and council district.
In recent years, the city made a $200M investment into the Renasant Convention Center, elevating it to a first-class space capable of welcoming large conferences like COGIC, AutoZone, St.Jude, and many others; however, the current conditions of our Convention Center Hotel have prevented us from fully capitalizing on that investment.
In 2024, due to the conditions of the Sheraton alone, we lost twenty conventions. Those losses also mean that we lost over 31,000 room nights and Renasant rental revenue of more than $721,000. Still, most importantly, it means we lost the opportunity to welcome more than 105,000 visitors. We lost the opportunity for those visitors to eat in our local restaurants, make purchases from our local retailers, and see the best version of Memphis.
Our proposed plan allows us to leverage the hotel's potential to benefit our community and the local economy.
 Dispelling the Myth: The Need for Additional Hotel Rooms
To fully optimize the Renasant Convention Center, Memphis needs 1200-1500 hotel rooms, which can be booked in one or two hotels. Currently, to get those booking numbers, convention and meeting planners have to book rooms in 5 or 6 separate hotels, and most don’t want to split up their attendees in that way. We need the 600 Convention Center Hotel rooms to be operational and upgraded to attract the conventions that will make Renasant the powerhouse demand generator we need it to be.
The Dilemma: Heroic Action is Required to Protect Our Investment in Tourism Infrastructure
A group of local buyers approached us to express their concerns about the risk of this important property going dark. The group decided to purchase the hotel, but needed support.
After carefully reviewing the deal and having conversations with all parties, we determined that instead of supporting their deal it made more financial sense for the city to purchase the hotel, maximize revenue gain upon sale, and retain the local group as our development partners.
Our proposed action is in the best interest of our community, because the loss of this property doesn’t happen in a vacuum. The threat of losing this particular property presents a risk for our entire tourism industry, and that puts our greater economic stability at risk.
With the knowledge that the bank wanted this property off its books by year end, it became clear to us that auction was a serious possibility, and we needed to find a path to protect the property as a hotel and an upgraded hotel, at that.
The Proposal: The City Buys the Hotel, keeps it for Two Years; Sells it to a Non-Profit Entity with the Operational Experience Needed to Make this Property Successful
Our vision for renovating the Convention Center Hotel goes beyond a simple acquisition. The City plans to purchase the Sheraton Memphis Downtown Hotel for $22 million using 501(c)(3) bonds, which are lower interest and backed by non-property tax revenue. The hotel will be held for less than 2 years as a city asset, with a local operator with significant minority involvement managing the property and preparing it for sale. The city would be the hotel operator, and would not manage the day-to-day operations.
The City will then sell the hotel at market rate to another non-profit partner specializing in commercial real estate and operations of these kinds of property. And the proceeds from the sale will be used to pay off debt and to foster other tourism-related development. This is a major win for the city, as we search for additional revenue sources.
After the sale, the non-profit partner will retain the local developer for oversight, make upgrades to increase profitability, and return the property to the city at the end of the bond term at no cost.
 What is the Risk to the City?
The risk of doing nothing is much greater than the risk of moving forward with a strategic plan to save this critical property .
By taking control of the hotel, we are securing its role in our city's economic landscape and protecting it from potential challenges. This proactive approach aligns with our commitment to responsible governance and thoughtful urban planning. The purchase of the Sheraton Memphis Downtown Hotel is a strategic decision aimed at safeguarding our previous investments and supporting future progress.
Good News!
 
Weekly Crime Trend
The report below provides our weekly update on Part 1 Crimes. It updates daily and shows a continuous rolling 7-day total compared to the prior 7-day total. The charts on the right show the calendar week trend, comparing 2023 to 2024.
 (We maintain two crime dashboards, the Weekly Crime Trend report can be found here, and the Crime Analytics dashboard can be accessed here.)
Our Strike Team worked in the following zip codes this week: 38109, 38115, 38116, 38118.
Social and Community Shout-outs:
 MAS Adoption Saturdays. Bring home a furry friend this Saturday from Memphis Animal Services at Magnolia Soap & Bath Co. in Collierville. See more and share here.
Hollywood Douglass Block Party. Join Memphis Libraries for some community fun on Saturday, September 28 at 1pm at the Hollywood Branch Public Library! There will be food, games, music, and resources on employment, education, healthcare, and more! See more and share here.
 Democracy Day in Action. Join the National Civil Rights Museum and the Shelby County Voters Alliance this Saturday, September 28 to learn more ways to civically make a difference in your community! See more and share here.
 Memphis Parks 5K and Family Day. Join us this Saturday, September 28 at Overton Park for a healthy mixture of fitness, wellness, and family fun! See full details here.
Weekly round-up
🌟 Weekly Round-Up: Celebrating Graduates, Empowering Young Leaders, and Honoring 50 Years of Progress! 🌟
This week in Memphis was filled with milestones, education, and community empowerment:
HERo Day at Memphis Fire Training Center 🚒👧💪
MPD Graduation 👮♂️🎓
50th Anniversary of Inland Rivers, Ports, and Terminals Conference ⚓️🌊
Join us in celebrating these accomplishments and the continued commitment to progress and community engagement! 🎉👏 #MemphisStrong #MPDGraduation #HERoDay #CommunityProgress
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