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BALTIMORE-The City of Baltimore has sold revenue bonds totaling $301.7 million for the financing of the planned 756-room Hilton Convention Center Headquarters Hotel. The senior revenue bonds and subordinate bonds carried an average interest rate of 5.008%.
"It was a very favorable rating," Jeff Hungate, chief operating officer of the Baltimore Area Convention and Visitors Association, tells GlobeSt.com. "The bonds exceeded our expectations." The hotel will cost an estimated $305 million to complete.
The new Hilton will be a 19-story tower featuring 62,000 sf of meeting space and a parking facility to accommodate 550 vehicles. Designed by architectural firm RTKL Associates, the hotel will be an L-shaped structure and will be physically connected to the 1.2-million-sf Baltimore Convention Center.
"The hotel adds a lot of inventory to the city and that's a positive thing in getting conventioneers here," Hungate says. "The rooms will be targeted to conventions through a room block agreement."
The bond transaction is on schedule close on Feb. 8, at which point project general contractor and construction manager Hensel Phelps Construction Co.--which was awarded a $186-million construction contract in September--will be given notice to proceed and will start construction, says Irene Van Sant, project analyst director for the Baltimore Development Corp., which is overseeing the project. Development of the hotel is expected to take about 30 months, Van Sant says, and has a target completion date of August 2008.
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