Palm Beach County Approves $26 Million Convention Hotel Deal
Palm Beach County commissioners voted 6-1 to fund land for a 400-room hotel developed by Related Ross to attract larger convention events.
The Palm Beach County Board of County Commissioners voted 6-1 on Tuesday to approve a deal with Related Ross to develop a 400-room, 18-story hotel near the Palm Beach County Convention Center. The county will spend $26 million to purchase 1.8 acres of land at 940 S. Rosemary Ave. in West Palm Beach, which Related Ross will then lease back to finance, build, and operate the facility.
The agreement establishes an initial 33-year lease with options to extend the term up to 97 years. The county expects an initial annual base rent of $1.117 million, which will increase by 3% annually, along with parking payments and 6% of annual hotel revenue exceeding a $77 million threshold. County Administrator Joe Abruzzo estimated the deal could generate $1 billion for the county over its term.
This second approval follows lawsuits from neighborhood groups, including the Grandview Heights Neighborhood Association, which alleged that the initial approval violated Florida’s Sunshine Law. Commissioner Gregg Weiss cast the sole dissenting vote, citing concerns over parking capacity, neighborhood impact, and financial protections. Supporters, including the CEO of Discover The Palm Beaches, argued the hotel is necessary to compete for larger events and could increase convention business by 62%.
