RICHMOND—Today, Governor Northam announced that more than $17.3 million will be invested in the City of Hampton to establish the Starwood Hotels and Resorts® | Element® Hotel, creating 22 new jobs and spurring approximately $2 million in annual direct economic impact from traveler spending.
“The Element Hotel is a welcome addition to our ever-growing tourism economy,” said Governor Northam. “Tourism development is critical to positioning Virginia as a premier travel destination and projects like this will help Hampton continue to attract visitors and businesses, bringing new jobs and generating significant economic impact for the region.”
The project will receive support through the Virginia Tourism Corporation’s (VTC) Tourism Development Financing Program (TDFP), a gap financing program for larger-scale tourism development projects, geared toward fostering partnerships with developers, localities, financial institutions, the Virginia Resources Authority and VTC. The project reflects a total capital investment of more than $17 million and a projected local tax benefit of $234,000 during the first full year of operation. This is the sixth project approved under the Commonwealth’s TDFP. The hotel is slated to open in fall of 2018.
T Peninsula Hotel VA, LLC will construct a 120-room upscale, environmentally-friendly, Element® branded hotel at the site of a former Macy’s department store at Peninsula Town Center. This Element hotel, the first of its kind in the Commonwealth, will feature extended-stay rooms, meeting space, a rooftop terrace, a fitness center, and an indoor pool. The hotel will add new lodging options for travelers and will provide guests with easy access to many shopping and dining options within the immediate area.
“Tourism is an instant revenue generator for the Commonwealth, and an important diversifier for our economy,” said Secretary of Commerce and Trade Brian Ball. “In 2016, visitors to the Hampton area spent more than $240 million. The addition of the Element Hotel will not only increase visitation and spending in Hampton, but will also provide valuable jobs and an increased tax revenue. We are delighted to welcome this new property to the Hampton Roads area.”
“We are very excited about the Element Hotel and all the changes coming to the Peninsula Town Center,” said Matthew Hooker, asset manager for Peninsula Town Center. “We look forward to working with the City of Hampton, and the surrounding communities, to strengthen Peninsula Town Center’s position as the region’s premier destination to shop, dine, play and stay.”
“The upscale Element Hotel will be a welcome addition to the Peninsula Town Center, and we appreciate the state’s investment in Hampton’s future,” said Donnie Tuck, Mayor of Hampton. “This hotel is in keeping with City Council’s strategic vision for Hampton as we look to better serve both residents and visitors.”
For more information on the Virginia Tourism Development Financing Program, please click here.