Denver Convention Center Hotel Authority for the Hyatt Regency

Downtown Denver’s skyline saw its first major change in 25 years with the addition of the new $285 million Hyatt Regency Denver at Colorado Convention Center. This 37 floor structure boasts 1,100 new hotel rooms, eight banquet rooms, five meeting rooms, and three board rooms, helping position Denver as one of the country’s top convention destinations. The magnitude of the economic impact of this new facility is remarkable: record sales of over $100 million in pre-bookings between 2006 and 2012, the addition of 60,000 square feet of new meeting space, and 500 new employees with an annual payroll of $15 million.

While the uniqueness and impact of the hotel go without mention, the Denver Convention Center Hotel Authority also required equal parts ingenuity and dedication to conceive of a financing system that would bring the plans to fruition after several setbacks that had delayed the start of this important development. Created on March 3, 2003, by former Mayor Wellington E. Webb and Denver City Council, the Hotel Authority was charged with the task of administering the design, financing, construction and operations of the hotel. Seven Denver area leaders were named to the Hotel Authority, and, under the leadership of chair Gail Klapper and CEO Bill Mosher, met twice a month for three years to oversee the project. On June 25, 2003, the Hotel Authority issued $354,825,000 in tax-exempt revenue bonds through an Economic Development Agreement with the City of Denver, ultimately realizing one of the lowest interest rate financings in recent times. The bonds were sold on the open market, and the Hotel Authority reimbursed the City of Denver for all pre-issuance costs.

From March 3, 2003 when the Hotel Authority was formed to December 20, 2005 when the hotel opened, this 1.2 million square foot, state-of-the-art facility was completed in only 34 months, thanks to the combined efforts of the following entities:

- Denver Convention Center Hotel Authority
- FaulknerUSA
- Hensel Phelps Construction Company/JAWalker Construction Co./Alvarado Construction, Inc., a Joint Venture
- klipp/Brennan Beer Gorman, a Joint Venture
- Hyatt Corporation

In 2006, the hotel will exceed pro-forma occupancy and will meet all opening year financial projections. The Hotel Authority is now being held up as a model for public investment projects nationwide, and the Hyatt Regency Denver at Colorado Convention Center an ideal tool for economic development and expanding convention business.