Related Cos. of New York, led by billionaire Stephen Ross, is advancing its presence in Palm Beach County's hospitality sector with plans to construct a second Hilton hotel at the Palm Beach County Convention Center. This 400-room hotel, announced by West Palm Beach Mayor Keith James, is to be built on a parking lot owned by Related, adjacent to the existing hotel at 650 Okeechobee Blvd. in West Palm Beach. The new hotel will double the current accommodation capacity to 800 rooms, aiming to attract larger corporate events and meetings.
However, this move by Related Cos. might impact Palm Beach County's ongoing search for proposals to build a new 600-plus room hotel on county land near the convention center, which explicitly requires a non-Hilton brand. Despite this, Kenneth Himmel, CEO of Related Urban, expressed confidence in their proposal, emphasizing Related's strong financial position and the strategic location of their land. He highlighted the benefits of having two Hilton-branded hotels, including a consistent reservation system and appeal to larger groups.
Related's long-standing plans include building more hotel rooms on their property at 900 S. Rosemary Avenue, motivated by the success of the Hilton convention center hotel. Gopal Rajegowda, a partner with Related Southeast, stated that construction for the new Hilton hotel is expected to start in early 2025, with completion targeted for 2027. Despite the county’s different requirements, Himmel believes that Related's proposal deserves consideration due to their significant investments in the city and county, including the first convention center hotel and several other projects in West Palm Beach.
Palm Beach County Administrator Verdenia Baker emphasized a fair and competitive process for the hotel bid, with no special treatment for any company. The county seeks proposals for one of three sites around the convention center, with a maximum of 1,400 hotel rooms allowed in the CityPlace Development of Regional Impact area. This limitation means there isn't enough room for both Related's proposed 400-room hotel and the county's desired 600-room hotel.
Tourism officials like Milton Segarra of Palm Beach County's tourism marketing arm welcome the addition of more hotel rooms. Related is also seeking approval from the city of West Palm Beach for its project, with city spokeswoman Diane G. Papadakos noting general support for hotel construction at the proposed location.
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