“There were 2 ½ times MORE requests to purchase these bonds than the City had bonds to sell,” said Mayor Watson.  “That alone should tell you that Austin is still ‘riding high’ as a destination City.  But, it also shows that we are certainly moving in the right direction with our efforts to revitalize downtown.  After all, the Convention Center Hotel – as well as the Convention Center Expansion -- are core revitalization projects.”

The 29-story, 800-room hotel is expected to bring an estimated economic impact of more than $136 million annually – and create 2,100 during construction alone. 

In addition, the hotel will have 93 residential units, a 750-space underground parking garage and retail.

The City’s investment in this project was $15 million from the Convention Center that will be paid back to the City with interest over the life of the bonds. The City also expects, over 30 years, to gain some $170 million, in addition to owning the hotel in the end -- an asset that is estimated to be worth some $350 million.

“There was some discussion at the time we made the decision to invest the $15 million that we should not do so,” said Mayor Watson.  “Today, everyone should know we did the right thing.”

The Hotel is expected to take approximately 30 months to complete and should open in January 2004.