search

The Real Deal Logo

Trending

Starwood REIT quickly burning liquidity Starwood REIT quickly burning liquidity Steph Curry pays $9M for commercial building in SF’s DogpatchSteph Curry pays $9M for commercial building in SF’s DogpatchAll Year goes after Yoel Goldman’s syndicatorAll Year goes after Yoel Goldman’s syndicatorFoxtrot founder Mike LaVitola eyes brand revivalFoxtrot founder Mike LaVitola eyes brand revival
Politics
Texas

$2B coming to Houston convention district

Amended state law opens revenue from hotel-occupancy taxes over 30 years

Rendering of George R. Brown Convention Center and Houston First's CEO Michael Heckman
Rendering of George R. Brown Convention Center and Houston First's CEO Michael Heckman (HoustonSports.org, Houston First)

Multibillion dollar transformation is coming to Houston’s George R. Brown Convention Center and surrounding area as a state law takes effect opening hotel occupancy tax revenues to boost the downtown district.

The city of Houston and the corporation that promotes its convention and tourism industries, Houston First Corporation, will receive the amount of hotel occupancy taxes that exceed this year’s collection for the next 30 years, the Houston Business Journal reported.

The revenue could exceed $1.8 billion over the next three decades and can fund hotels, venues and other development in the convention district. 

The legislation, authored by state Sen. John Whitmire of Houston, amended a 2013 law that provided the same deal for Dallas and Fort Worth. Gov. Greg Abbott signed it into law for Houston this week. Since the funds come from the so-called “HOT tax,” paid by guests of hotels and short-term rentals, it comes at no additional cost to local taxpayers.  

Houston First will form its vision over the next few years, “with input from all of our stakeholders,” CEO Michael Heckman said.

Sign Up for the undefined Newsletter

“We want to build the kind of convention district that really allows us to do a lot more than even what we’re able to do today,” Heckman told the outlet. “This is an economic development in our city that we will benefit from for decades.”

Other cities have put the “HOT tax” to work to stay competitive, such as Dallas’ approval of a $4 billion redevelopment of the Kay Bailey Hutchison Convention Center and Fair Park.

Houston already has success bringing major conventions and trade shows to the city. There are 30 citywide meetings scheduled throughout this year, which are expected to have an economic impact of $266 million, exceeding pre-pandemic numbers. 

The city was recently selected to host the Professional Convention Management Association’s annual conference in 2025, potentially bringing up to 4,000 industry professionals to the city.

—Quinn Donoghue

Read more

Companies and People
Houston First Corp.Greg AbbottMichael Heckman
Tags
CommercialInvestmentnew bill