Palm Beach County commissioners on September 29, 2026, voted 6-1 in favor of an agreement with Related Ross to develop an 18-story, 400-room hotel adjacent to the Palm Beach County Convention Center in West Palm Beach. The county will own the land and final hotel building, leasing the hotel to Related Ross under a 97-year lease. The initial annual base rent is $1.1 million with 3% yearly increases, amounting to over $600 million during the lease term. Commissioner Gregg Weiss cast the sole dissenting vote.
Convention Center Capacity and Expansion Plans
The new Related Ross hotel aims to immediately raise the convention center’s maximum attendee capacity
from about 1,250 to 2,500, effectively doubling it, according to Dave Anderson, the convention center’s general manager. The convention center, originally constructed in 2004 and expanded in 2012, has plans to grow from 350,000 square feet to 750,000 square feet. County Administrator Joe Abruzzo has indicated that renderings for this expansion will be presented by summer 2027. Commissioner Maria Marino said the second hotel is essential to justify this expansion.
Financial Terms of Lease and Tax Exemption
In addition to the hotel lease, Related Ross will lease 335 parking spaces within the county’s garage for $402,000 annually, while Hilton West Palm Beach operators will lease 255 spaces
for $306,000 yearly; both leases include 3% annual increases. Combined lease and parking payments in the first year total approximately $1.8 million. The hotel will be exempt from property taxes, a provision that potentially saves Related Ross several million dollars over the lease term. Without tax exemption, real estate consultants estimate property taxes could range from $2.5 million to nearly $8 million annually depending on valuations.
Land Acquisition and Opposing Views
The county agreed to pay $26 million for about 1.8 acres at 940 S. Rosemary Ave., where the hotel will be built. Related Ross provided a $5 million initial deposit, leaving a net $21
million county investment from reserves. Independent appraisals valued this land at roughly $43 million, while the county property appraiser placed it at $8.8 million. Margaret Frazzini, president of the Grandview Heights Historic District Association, criticized the approval process and the tax exemption, describing it as a public subsidy favoring a billionaire developer over local families.
Economic Impact and Official Statements
According to BAE Urban Economics, expanding lodging capacity through this hotel will generate more business and economic benefits for Palm Beach County. The county will receive guaranteed lease and parking revenues, with potential increases if hotel revenues exceed $77 million, adjusted annually. Projections by BAE
suggest the county’s return could exceed $7 billion if revenues grow 5% annually over the lease term. Commissioner Joel Flores emphasized the guaranteed payments and the job creation potential, saying the hotel will support area business growth. Commissioner Marino stated, “This is good for the county, but it is also good for Related Ross, or else they would not be doing this.” The county compares its $26 million subsidy favorably with higher subsidies for convention hotels in Fort Worth, Raleigh, Miami Beach, and New Orleans.
