Worcester Polytechnic Institute (WPI) has proposed purchasing two hotels in Worcester, Massachusetts, to convert them into student housing, a plan that has sparked concern among city officials due to potential financial repercussions. The hotels in question are the Hampton Inn & Suites at 65 Prescott St. and the Courtyard by Marriott at 72 Grove St., both located within the Gateway Park redevelopment district, a 55-acre area that includes various businesses and offices.
City officials, including Mayor Joseph Petty, Worcester City Manager Eric D. Batista, and other key figures from the Worcester Economic Development Coordinating Council (EDCC), expressed their concerns in a letter to WPI’s President Grace Wang and Board of Trustees Chair William Fitzgerald. They warned that the proposed purchase could lead to a significant loss of revenue for the city, estimating an annual reduction of $758,000 in property taxes and $850,606 in hotel and motel tax revenue. Additionally, they highlighted the potential impact on the local economy, noting that the move could eliminate 25% of the city’s hotel room capacity and result in the loss of 100 jobs.
The officials emphasized that the Gateway Park Project was never intended to support WPI’s campus expansion or student housing needs at the expense of the city’s tax base. They also expressed surprise that WPI had been considering this purchase for months without informing the city earlier, questioning why the university did not explore acquiring space from the nearby Becker College, which closed in 2021.
During an August 27 City Council meeting, City Manager Batista mentioned that discussions with WPI representatives had taken place and expressed hope for a resolution. However, District 2 Councilor Candy Mero-Carlson criticized WPI’s approach, arguing that the hotels were never intended to be used as dormitories and questioning the university’s decision-making process.
WPI confirmed its intentions in a letter to the university community, dated August 26, from Executive Vice President and Chief Financial Officer Michael Horan and Senior Vice President for Enrollment Phillip Clay. The letter explained that the university is facing a projected student housing shortage and that the purchase of the hotels is part of a strategy to address this issue. While WPI guarantees on-campus housing for first-year and transfer students, there is insufficient space for upper-level students, exacerbating the housing crunch in Worcester.
The letter also assured that the hotels would remain on the city’s property tax rolls and continue generating hotel tax revenues while operating as hotels. WPI stated that it does not anticipate any job losses for current hotel employees and plans to retain the existing management company. The Hampton Inn is expected to transition into student housing in 2026, while the Courtyard Marriott will continue operating as a hotel until 2030.
No specific date for the hotel purchases was provided, and a WPI spokesperson declined to offer further comment on the matter.
Source: masslive.com