MEMPHIS, Tenn. — The $190 million Grand Hyatt hotel, part of the One Beale project overlooking the Mississippi River, is a dream that might not come true.
The 350-room luxury Grand Hyatt hotel is a highly anticipated crowning jewel addition to the Bluff City’s skyline but it may not happen, the project's developer said Wednesday.
According to Chance Carlisle, the project's primary developer, the hotel is unlikely to happen because of a $5 million funding gap between the project's budget and financing structure equals what the project will actually cost.
“Carlisle Development has kept the project near its original schedule and advanced more than $9 million of capital," Carlisle said in a letter to mayor Jim Strickland. "To continue to spend capital without further delay, we request your plan to restore the incentives to $46 million.”
The developer gave a deadline of 5 p.m. on October 31 and the mayor responded Wednesday in a letter to Carlisle.
“The city does not have a plan for providing an additional $5 million to this project and is unable to offer any further financial support," Strickland said. “I hope you can find a path of success."
The Grand Hyatt would have joined the Hyatt Centric and Caption by Hyatt at One Beale on the hotel campus at the corner of Beale and Front streets.
“The real question is why the terms changed at the 11th hour when millions of dollars and hundreds of construction jobs were at risk by local Memphians on a hotel the city needs," Carlisle said in a statement to ABC24.