Developers outline $537M downtown headquarters hotel, say financial close expected in Q4; $20M gap remains

Hamilton County commissioners received a detailed update June 24 on the proposed downtown headquarters hotel, which developers said will total about $537 million, include roughly 700 rooms and the city’s largest hotel ballroom, and is scheduled for construction completion in the second quarter of 2028.

Portman Holdings’ development lead Reid Scott told the Board of County Commissioners the project “is looking at a project's cost of about $536,000,000. We are anticipating a financial close in the fourth quarter of this year.” Scott said the hotel program includes roughly 62,000–63,000 square feet of interior meeting space and 17,000–18,000 square feet of rooftop terrace space, plus a planned sky bridge linking the hotel to the renovated convention center.

The update placed the hotel’s opening after the convention center renovation. Katie Westbrook, senior vice president of development at 3CDC, said the convention center construction remains on schedule and the plaza will open this November, with the first convention event planned for Jan. 13.

Why it matters: County staff and developers said the new hotel and the convention center will operate as an integrated meeting destination designed to attract larger conventions and to spur renovation of existing downtown hotels. Scott told commissioners that meeting planners consider a direct, weather-protected connection between hotel and convention center — the project’s planned sky bridge — “a critical, offering to be a competitive convention hotel.”

Financing and schedule details: Developers presented a multi‑part capital plan that combines public and private sources. Public pieces discussed include a confirmed state strategic grant, a transformational mixed‑use development tax credit valued at about $40 million (to be monetized during or prior to construction), port and state bonds, and a $50 million city loan (the city has authorized $40 million in bonds that will be combined with $10 million in convention‑center savings). Private contributions include equity from Portman and partners, a construction loan and a confirmed $17.5 million “key money” contribution from the hotel operator.

Scott and 3CDC said the team currently estimates a roughly $20 million funding gap (about 3–4% of the budget). Scott said the team expects to narrow that gap through more competitive contractor pricing, cost‑efficient engineering and reductions to contingency as buyouts complete. He said improved market conditions through the fall would also help close the shortfall without changing the project size.

On project scale: Developers said the hotel was resized during planning from an earlier 800‑room concept to 700 keys to improve financeability and market feasibility. Reid Scott said the 700‑room hotel, combined with a planned renovation of an existing downtown hotel being pursued by Portman, would raise downtown lodging supply about 19% and leave the new headquarters hotel operating in a projected low‑70s occupancy range — a level Scott described as healthy for a full‑service headquarters property.

Public approvals and next steps: Scott said the team expects to seek approval of the development and room‑block agreements in September and aims for financial close late this year. He said the project remains under active detailed pricing and that the operator brand will be announced in the coming weeks. 3CDC and Portman said they will return to the county for formal approvals in September.

Commissioners raised concerns about timing, room counts and public subsidies. Commissioner Reese pressed for clarity on the earlier 800‑room expectation and warned that conventions sometimes require a single, connected host hotel. “We’ve got to get 800 rooms back,” Reese said during the discussion, reflecting long‑running county concern about replacement of the former Millennium hotel supply. Commissioner Summer O'Dumas asked how the $20 million gap will be closed; Scott said it remains a fluid conversation but emphasized project management and conservative budgeting.

The presentation included commitments on inclusion goals for construction contracting — developers reported about 21.5% minority and nearly 12% women‑owned subcontractor participation to date for the convention center work — and said similar goals will be formalized in the hotel development agreement.

What’s next: Developers expect to return to the Board of County Commissioners in September seeking formal approval of development agreements; they plan to announce the hotel operator publicly before then. County and city staff will continue to vet the capital stack and the room‑block/booking terms that would be committed to the county and to Visit Cincinnati-Northern Kentucky.

Ending: Commissioners thanked the team for the update and noted the presentation will be followed by a formal submission in September for county review and approval.