A significant milestone has been achieved for the development of a new hotel on Hutchinson Island, as the Savannah-Georgia Convention Center Authority (SGCCA) and the city of Savannah have successfully revised their tax agreement. This amendment was crucial to secure funding through bonds necessary for constructing the planned hotel. By extending the partnership until 2058, it aligns with anticipated bond terms, ensuring that revenues from hotel taxes can be utilized for repaying these bonds.

Under the revised agreement, funds generated from hotel-motel taxes will play a pivotal role in supporting the financial structure of the project. These funds are distributed among several entities, including the Savannah Convention Center, Visit Savannah, and tourism enhancement initiatives. The city itself retains 37.5% of the revenue for its general fund, while the remaining portion is allocated accordingly. For instance, within the city’s 2025 budget, approximately $49.4 million in tax revenues have been projected, with the convention center set to receive around $6.9 million. Financial planning involves issuing bonds in three stages, where the final stage requires direct repayment by SGCCA, estimated at roughly $65 million. To ensure this obligation is met, the authority plans to leverage existing cash reserves and establish an escrow account funded by future hotel-motel tax collections.

The new hotel represents not only a substantial investment but also a strategic move to enhance Savannah’s appeal as a premier destination for conventions. With plans to add 445 rooms to Hutchinson Island, complementing the existing 400-room Westin Hotel nearby, the expansion aims to meet growing demand from potential visitors. According to Mark V. Smith, Chairman of SGCCA, this addition will bring the total number of rooms close to 850, significantly boosting booking opportunities for the expanded convention center. This initiative underscores the importance of forward-thinking infrastructure investments in fostering economic growth and securing long-term success for both the city and its attractions.