John Boyd Jr. says Atlantic City must address both its convention center hotel and aging convention facilities to compete for major business events, as officials consider alternatives to a controversial redevelopment proposal.
ATLANTIC CITY, N.J. — As the future of the Sheraton Atlantic City Convention Center Hotel remains uncertain, a nationally recognized corporate site-selection expert says preserving a competitive convention hotel and modernizing the adjacent convention center should be economic development priorities for Atlantic City and New Jersey.
John Boyd Jr., principal of The Boyd Company, said the resort's ability to attract major conventions, business meetings and corporate investment depends on having the accommodations and infrastructure that meeting planners expect.
Speaking October 28 on The AC Mike Lopez Show on News Talk 1400 & 92.3 WOND, Boyd argued that the Sheraton debate is about much more than the future of one aging hotel.
"The big deal right in this moment is the Convention Center," Boyd said.
He emphasized the importance of hotel accommodations immediately adjacent to major convention facilities.
"You need on-site hotel rooms that are amenity rich to compete with major Convention hubs around the country," Boyd said.
His comments add a national economic development perspective to an increasingly urgent local dispute involving the Sheraton's owner, Atlantic City officials, the Casino Reinvestment Development Authority, Atlantic County and the administration of Gov. Mikie Sherrill.
At stake is the future of a 502-room hotel connected to the Atlantic City Convention Center, along with the city's ability to attract conventions that support restaurants, casinos, transportation providers and other businesses throughout the region.
The Owner's $100 Million Plan
The Sheraton's owner, LINY Investor LLC, an affiliate of Scannapieco Development Corporation, has proposed an approximately $100 million redevelopment of the property.
Under the plan, 252 existing hotel rooms would be renovated, with approximately 250 rooms remaining in hotel use. Another 250 existing rooms would be converted into 130 age-restricted apartments for residents 55 and older.
The residential portion would include 26 affordable units.
The proposal also calls for improvements to the hotel's public spaces, exterior and mechanical systems, along with new amenities.
The Casino Reinvestment Development Authority approved the project's site plan in March, and Atlantic City Council approved long-term tax arrangements in June.
However, those approvals have not resolved the project's financial challenges.
Developer Tom Scannapieco has been seeking substantial assistance through New Jersey's Aspire tax-credit program, administered by the New Jersey Economic Development Authority.
Scannapieco has argued that the hotel has struggled financially for years and that the convention center does not generate enough business to sustain a 502-room hotel without substantial changes.
In a recent interview with WHYY, Scannapieco explained that his company developed the mixed-use proposal after concluding that maintaining the existing hotel model would require ongoing financial support.
"The message to me was very clear: We had to find a solution that did not involve a continuing annual public subsidy, and that's what we did," Scannapieco said.
He has also said the hotel needs extensive renovations after decades without a comprehensive modernization.
The developer maintains that converting part of the property to apartments would create a more reliable revenue stream while allowing the remaining hotel rooms to be upgraded.
That position has placed the owner at odds with tourism and convention officials who believe Atlantic City needs the full room inventory.
Boyd: Convention Hotels Are More Than Places to Sleep
Boyd said major convention destinations compete not only on the size of their meeting facilities but also on the quality and convenience of their hotels.
Corporate conventions frequently require meeting rooms, restaurants, business amenities, hospitality suites and informal gathering spaces where attendees can network outside scheduled sessions.
He pointed to the importance of hotel-based business activity at major trade shows in Las Vegas.
"That's where the networking happens," Boyd said.
In his view, a convention center without sufficient adjacent hotel capacity faces a significant disadvantage when competing against destinations that can accommodate large groups in one location.
Boyd also emphasized that Atlantic City must invest in the convention center itself.
He cited the need for improvements to technology, connectivity and other infrastructure.
The argument mirrors concerns previously raised by CRDA board member Frank Formica, who has warned that preserving the hotel without modernizing the convention center would not solve the larger problem.
Formica has specifically identified internet connectivity, cellular service and aging technology as issues requiring attention.
Boyd said Atlantic City needs to consider both facilities as parts of the same economic development system.
Convention Officials Fear Losing Major Events
As South Jersey NewsBeat previously reported, Formica has been advocating for a financing arrangement that would preserve the Sheraton as a full convention hotel.
Formica said information provided by Visit Atlantic City indicates that reducing the room inventory could significantly limit the city's ability to compete for major conventions.
He has argued that some meeting planners require approximately 500 rooms at an adjacent headquarters hotel.
"If that convention center does not have a 500-room hotel, you can expect an economic impact that will affect most people in this county," Formica said during an earlier WOND interview.
Those concerns have fueled opposition to the proposed apartment conversion.
However, the owner disputes the assumption that the existing 502-room hotel can operate profitably simply because convention officials believe the inventory is necessary.
Scannapieco has maintained that the hotel has not attracted sufficient business to support its operating costs and long-delayed renovations.
That disagreement is central to the current debate.
Convention officials say reducing the hotel could make it harder to attract events.
The owner says the hotel cannot survive in its current form without a financially sustainable business model.
Both sides agree that substantial investment is necessary.
Potential Closure Raises the Stakes
The dispute has become more urgent because the hotel faces the possibility of closing later this year.
Scannapieco has said the hotel could close in mid-December if a workable financing solution is not secured.
The property has also been preparing for potential employee layoffs.
Marriott International operates the Sheraton under an arrangement with the owner, and the future of that operation is tied to the hotel's financial condition.
A closure would create an immediate problem for Atlantic City's convention industry, particularly because the Sheraton is directly connected to the convention center by an enclosed walkway.
Atlantic City Mayor Marty Small has supported the proposed redevelopment, arguing that the city cannot afford to lose the hotel.
Meanwhile, Formica and other convention advocates have urged the state and local governments to consider alternatives that would preserve more hotel rooms.
Atlantic County Could Play a Role
South Jersey NewsBeat previously reported that Atlantic County Executive Dennis Levinson expressed a willingness to discuss possible county involvement in a solution.
Levinson said the county has experience participating in complex economic development financing arrangements but would need assurances before putting public money at risk.
"I don't know that we can solve the problem there," Levinson said in an earlier interview on The Don Williams Show. "But we can sure have a dialogue."
Formica subsequently said meetings were being arranged to explore cooperation among Atlantic County, Atlantic City, CRDA and the state.
Those discussions have not produced a publicly announced rescue agreement.
No specific county funding commitment or alternative financing package has been confirmed.
Boyd said the state has an important role to play in protecting an economic asset that benefits more than Atlantic City itself.
"Atlantic City is an economic development asset for the entirety of New Jersey," he said.
He argued that a strong Jersey Shore tourism economy supports the state's broader efforts to attract companies, offices and investment.
Boyd also emphasized that any public assistance should protect taxpayers.
"Obviously a taxpayer needs to be protected," he said.
More Than Casino Tourism
Boyd believes Atlantic City's convention business could become increasingly important as the region works to diversify beyond casino gambling.
He pointed to opportunities involving aviation, aerospace, film, multimedia and other emerging industries.
Those sectors could generate business meetings, conferences and corporate gatherings that bring visitors to Atlantic City throughout the year.
Boyd specifically identified the FAA William J. Hughes Technical Center as a major economic development asset for Atlantic County.
He said the region should pursue opportunities involving advanced aviation, sustainable fuels, artificial intelligence and next-generation transportation.
A stronger convention industry could complement those efforts by making Atlantic City a destination for industry events and professional meetings.
For Boyd, the hotel and convention center debate is therefore connected to the region's long-term economic future.
He argued that Atlantic City has the hospitality infrastructure and location to compete for more business, but must maintain the facilities that corporate meeting planners expect.
A Decision With Regional Consequences
The Sheraton's future remains unresolved.
The owner continues to pursue a redevelopment designed to make the property financially viable.
Convention officials continue to advocate for preserving approximately 500 hotel rooms.
County and state officials have been drawn into discussions about whether another financial structure could address the problem.
And the possibility of a December closure adds pressure to find a solution.
Boyd's message is that the issue should be considered in the context of Atlantic City's broader economic development strategy, not simply as a dispute over one hotel.
The resort needs competitive accommodations, modern meeting facilities and a coordinated approach to attracting business events.
Without those elements, he warned, Atlantic City risks limiting one of its opportunities to expand its economy beyond casino gambling.
John Boyd Jr. appeared October 28 on The AC Mike Lopez Show, airing weekdays from noon to 1 p.m. on News Talk 1400 & 92.3 WOND.
About the Author
Karen Johnson
With over 30 years of news experience in major markets like Los Angeles, Denver, and Columbus, Karen now covers our area for South Jersey NewsBeat. She also brings her articulate and conversational news delivery to WOND radio listeners every weekday. Her background includes work with the NBC Radio Network, and she thrives in fast-paced news environments.
