A major redevelopment project at one of our city's most prominent hotels is moving forward after local officials voted to support a comprehensive renovation plan that will transform the property into a mixed-use destination.
Members of the Atlantic City council voted on June 16 to approve two separate 30-year tax breaks for the redevelopment of the Sheraton Atlantic City Convention Center Hotel at 2 Convention Boulevard. The ambitious project will convert the 16-story property into a combination of senior housing and a smaller, modernized hotel.
The council's decision came less than three months after the Casino Reinvestment and Development Authority approved a final site plan for the entire project on March 17, marking significant progress for a property that has struggled to remain competitive in recent years.
Two Projects Under One Roof
The redevelopment plan splits the existing hotel into two distinct sections. Pennsylvania-based LINY Investor LLC, the property owner and a firm affiliated with Scannapieco Development, will renovate 252 existing hotel rooms to create a limited-service hotel with 250 rooms. Each room will span approximately 368 square feet and receive comprehensive updates including new finishes, artwork, carpets, wall coverings, and ceiling paint.
The second phase will convert 250 existing hotel rooms into 130 age-restricted residential units, including 26 affordable units. The senior housing will offer a mix of studios, one-bedroom, and two-bedroom apartments. The larger units will feature full-size kitchens equipped with refrigerators, freezers, ovens, ranges, microwaves, and dishwashers.
Thomas Scannapieco, a principal of LINY Investor and the head of Scannapieco Development, revealed that the residential portion will include upscale amenities such as a golf simulator, swimming pool, barbecue area, and sauna—features designed to attract active seniors to the property.
Preserving Separation and Character
While both the hotel and residential sections will share the same main entrance, developers plan to add a secondary entrance to the residential side to maintain separation between the two uses. The existing Turn Tavern Brewer and Restaurant will continue operating in the building, preserving a familiar local establishment.
The broader renovation will also expand exterior amenities, renovate the building's first and second levels, construct a patio, and add a covered walkway connecting the convention center parking garage to the facility. Modified signage will complete the transformation.
A Property in Crisis
Despite its location in one of the busiest parts of our city, the Sheraton Atlantic City Convention Center Hotel has faced mounting challenges. Built in the 1990s and last sold in 1994 according to Atlantic County Tax Board records, the property has struggled to keep pace with competitors.
During a January public hearing before the CRDA, Scannapieco outlined the perfect storm of factors that have undermined the hotel's viability. Hurricane Sandy, the pandemic, mobile gaming, and increased casino competition have all taken their toll on the property's economics. Most troubling, the furniture, mechanical, electrical, and plumbing systems haven't been upgraded in 27 years—far beyond the typical eight-year renovation cycle for hotels.
The situation reached a critical point when Sheraton corporate issued an ultimatum. "[Sheraton] formally notified us that this hotel does not meet brand standards," Scannapieco said during the hearing. "If we don't undertake a major renovation, they will remove their name from the building. That would be a disaster for the hotel. It would be a disaster for the convention center, and it would be a disaster for Atlantic City at the entrance to the city."
A $100 Million Investment
The comprehensive renovation carries an estimated price tag of $100 million. Beyond the interior updates, LINY Investor plans to install a new roof, redo the façade of the entire building, and upgrade mechanical systems throughout the property.
According to a report in NJ.com, Scannapieco intends to secure a tax credit from New Jersey's Aspire program to help fund the renovations. Combined with the two 30-year tax breaks approved by our city council, the financial package aims to make the ambitious redevelopment economically feasible.
For Atlantic City, the project represents more than just the renovation of a struggling hotel. It's an opportunity to revitalize a prominent property at the city's entrance while adding much-needed senior housing and preserving jobs at the convention center. As construction moves forward, the transformation of the Sheraton will serve as a visible symbol of our community's ongoing efforts to adapt and thrive in a changing hospitality landscape.
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.
