City of Memphis buys largest hotel for $22M

MEMPHIS, Tennessee —The city of Memphis has acquired the 590-key Sheraton Memphis Downtown from an institutional seller for $22 million in a move that city leaders said represents a milestone in Memphis’ downtown and convention district revitalization.

The property is directly connected to the Renasant Convention Center, which recently underwent a $200 million modernization. The hotel, which is the largest in Memphis, will be reimagined as the new Marriott Hotel Downtown Memphis through a forthcoming renovation led by Dunmore, Pennsylvania-based Carlisle Development Group. Atlanta-based Hunter Hotel Advisors facilitated the transaction, which was initially expected to close in late September.

The nonprofit 250 North Main LLC, a subsidiary of the Downtown Memphis Commission’s Center City Development Corp., will hold and oversee the Sheraton on behalf of the city.

“Through heroic efforts, the city of Memphis has reached a milestone moment with the successful purchase of the Sheraton Memphis Downtown. This strategic investment not only preserves an essential asset but also strengthens the foundation of our city’s convention and tourism economy,” said Tannera Gibson, chief legal officer for the city of Memphis.

In 2024, Mayor Paul Young stated that the city aimed to preserve and protect its largest hotel.

“What we cannot afford as a community is to have another tower in downtown Memphis go dark or (for it) to be auctioned off to the highest bidder and it becomes a 1-star or 2-star hotel attached to our $200 million investment at our convention center,” Mayor Young said in October 2024.