City of Memphis reaches deal to build new 500-room Loews hotel downtown

WATCH: City of Memphis reaches deal to build new 500-room Loews hotel downtown

MEMPHIS, Tenn. — The city of Memphis announced it has reached a deal with Loews Hotels to build a new, 500-room hotel in Downtown Memphis.

City officials signed a letter of intent on Tuesday with Loews Hotels to build the new "Memphis Convention Center Hotel" on North Main Street downtown, according to a release from the city.

That Loews branded hotel will have a minimum of 500 rooms, including meeting spaces, restaurants, retail and related spaces including ballrooms.

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It will be built on 140 North Main Street, next to the Civic Center Plaza.

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According to the letter of intent, the hotel has a goal of opening by the end of 2022, with an option of extending it to 2024.

As part of the agreement, the city agreed to seek city council approval of a five percent “tourism surcharge” – under the “Surcharge Act” – for a period of up to 30 years after the hotel opens.

That incentive is conditional on meeting certain state and local approvals, including the hotel being operational by June 30, 2024.

Below is the full statement from Mayor Jim Strickland:

"I couldn't be more pleased to announce that as of today, we have a signed letter of intent with Loews Hotels to build our new 500 plus room Memphis Convention Center Hotel. This has been a long time coming, and having a world-renowned brand like Loews in Memphis is a huge win for our city. I look forward to seeing the finished project, and ready to get to work with our new partner."

If you want to read the full letter of intent that outlines the agreement, click here.