Sheraton Arlington Hotel will close to make way for the construction of a $410 new hospitality property from Loews Hotels & Co.
The Sheraton will be demolished after the 2026 FIFA World Cup, with completion of the new Loews hotel expected by 2028, according to the Dallas Business Journal. The project, supported by incentives from the city of Arlington and the Arlington Economic Development Corporation, will transform 14 acres at 1500 Convention Center Drive. The Sheraton, an aging 311‑room property built in 1984, sits less than a mile from Loews’ existing 888‑room Arlington Hotel & Convention Center and Live! by Loews in the city’s Entertainment District.
The new Loews property will feature 513 rooms, 25,000 square feet of convention and meeting space and a parking garage with at least 735 spaces. Urbana Varro Hospitality Management Company, which operates the Sheraton, notified the Texas Workforce Commission that the hotel will close on Feb. 15, resulting in 110 layoffs.
Loews spokesperson Lisa Garland declined to provide detailed construction timelines but hinted at an announcement in January. Marty Wieder, director of the Arlington EDC, confirmed the layoffs are tied to redevelopment plans and emphasized the strength of Arlington’s hospitality market. He noted that displaced workers should find opportunities at other growing hotel properties in the area.
The financial agreement approved in 2023 includes $5 million from the EDC for site improvements, $15 million over seven years for the garage, and $20 million from the city over eight years for garage costs. Additional grants of $3.8 million over 10 years and $1.3 million over 14 years will be provided once the hotel opens.
The Loews project is part of a broader wave of hotel development and renovation in Arlington’s Entertainment District. The $54 million Caravan Court, a 145‑key upscale hotel on Division Street, is under construction and expected to open by the 2026 World Cup. Meanwhile, the Crowne Plaza Suites Arlington, owned by Equinox Hospitality, is undergoing a $9 million renovation to update 200 rooms and common areas, while converting its indoor pool into 5,000 square feet of meeting space. The city has entered a 10‑year agreement to provide $3.25 million in support between 2025 and 2027.
The projects underscore Arlington’s push to expand its hospitality infrastructure, positioning the city as a destination for business events and tourism with a strategic location halfway between Dallas and Fort Worth.
– Joel Russell
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