Omni Louisville Hotel

Image Credit Louisville Business First.

In today’s announcement by Louisville, KY Mayor, Greg Fischer Louisville will be the home of the new Omni Louisville Hotel. Not only is Louisville the place the hotel will be located but the city will also partner with Omni Hotel and Resorts in this nearly $300 million commercial real estate deal.

The partnership is understood to be a 52% (Omni)/48% (City/State) split. The city and state will receive the rebate of the tax generation as well as a $17 million parking garage ownership in return for a $139 million investment.

This four-diamond luxury hotel will feature 600 rooms, art gallery, two restaurants, a rooftop café, spa, fitness center, and a swimming pool. But that is not all. On the horizon are also spots for 227 luxury downtown apartments and a grocery store.

This endeavor also projects to generate nearly 800 new construction jobs, and over 300 permanent jobs upon opening. A virtual artist rendering video can be viewed on the Mayor’s Facebook page.

Louisville reactions mixed feelings

Commenters on the Mayor’s page are skeptical that this project will make any traction given the past failure of the proposed Louisville real estate venture of the Museum Plaza. Others are suggesting (urging) the Mayor to bring in casinos to the downtown area.

Some have prognosticated that increasing the competition of existing hotels in the city is unnecessary and will create high supply and low demand for empty rooms, which isn’t a factor here with the exception of one week in May. They cite the similar long term effects created by the newly developed Bourbon district and distillery tourism. “There is no long term plan.”

There are supporters for the construction of the 30 story Omni Louisville Hotel. Their feelings are optimistic for the assumed increase in city tourism, additional conventions and conferences will bring in more revenues spent on other downtown businesses. While this thought is a logical one, there is a urgent feeling by the city that there is not enough retail shopping established and the incoming guests will travel to the ‘burbs to eat and shop.

No matter what you think of the project one thing is for sure. Louisville’s landscape will change and that change will come with a hefty price tag. I just hope and trust that our city officials know the potential danger the city could encounter with commercial real estate leverage of this magnitude hanging over Louisvillians.

The Omni Louisville Hotel video