Ambitious Tri-Cities convention hotel throws out old plans. New upscale vision begins
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- Kennewick hotel project pivots to AC Marriott brand after planning reviews
- Local investors and Idaho credit union replace EB-5 funds for $47M hotel financing
- Convention center expansion and AC hotel aim to attract larger regional events
The Tri-Cities’ largest hotel is now under construction at the Three Rivers Convention Center in Kennewick.
The latest project by A-1 Hospitality Group, which broke ground this week, has changed dramatically since it was first announced to the public nearly two years ago.
After years of review and planning, it’s no longer slated to open as a Marriott Aloft.
It won’t have a popular Walla Walla Steak. Co. restaurant on its roof. And it won’t be funded by wealthy immigrants via the federal EB-5 green cards for jobs program..
Vijay Patel, founder and president of the Pasco hotel group along with supporters celebrated the start of a $47 million project with toasts and speeches on Tuesday. The 3.6-acre site is on Grandridge Boulevard.
Patel said planning and review process was extensive. The result is a better project, he promised.
Instead of opening as an “Aloft,” it will open with Marriott International’s “AC” brand, named for its creator, Antonio Catalan. AC was the preferred brand for the Patels, who see it as a sophisticated hotel brand catering to business and leisure travelers with minimal frills.
Aloft is a more youthful brand focused on design and catering to tech-savvy travelers.
Instead of opening with the steak restaurant, it will open with a different but undisclosed operator. Walla Walla Steak Co. confirmed it has no plans to open in Tri-Cities.
And it will be funded by equity from local supporters and a loan from a credit union, Idaho Central Credit Union, aiming to make a splash as it enters the market.
Convention center expands
The 163-room AC Marriott is being built in tandem with a $71.3 million convention center expansion that began in April.
The two buildings will connect, fulfilling a longstanding dream of expanding the Three Rivers Convention Campus to attract more and bigger gatherings that currently bypass Kennewick for larger venues in the region.
The convention center expansion is a public undertaking by the Kennewick Public Facilities District. It is being being financed with bonds backed by convention center earnings and a sales tax rebate from the state.
Kennewick voters rejected a local sales tax increase for the project three times and the project was reinvented without it.
The vision shifted to public-private partnership in 2018, after the final ballot box failure.
A big splash
A-1 Hospitality signed on as the private partner, having previously built the SpringHill Suites hotel that connects to the original center.
Local investors provided $15 million in equity. Idaho Central Credit Union is providing a $32 million construction loan.
ICCU is larger, state-chartered, federally insured credit union based near Pocatello. It is building branches in Kennewick, Pasco and Richland.
The AC Marriott loan helps introduce it to the Tri-Cities.
“We’re here to make a big splash,” said Jose Giron, commercial loan officer, at the ground breaking.
The credit union followed it up with a statement that it’s Kennewick branch should open by the end of the year.
“ICCU is excited to enter the Tri-Cities market and to support development at the Three Rivers Convention Center,” it told the Tri-City Herald.
Fowler Construction is the contractor.
The hotel will take 18-20 months to build. The rooftop restaurant is still part of the design. Patel promised the hotel will open with an active rooftop bar and restaurant to take in the sweeping five-story views.
Patel was particularly pleased to swap out the Aloft brand for AC, a mid-level Marriott brand reserved for larger cities.
Patel thought it would work well in Kennewick but Marriott disagreed. Kennewick would get the more youthful Aloft, it said.
The pandemic changed much about the project, including Marriott’s thinking.
Patel said he asked the company to reconsider. It sent an eight-person team to Kennewick, then agreed to make the change as a result of their review.
Busy developer
A-1 Hospitality is one of the Tri-Cities busier developers.
It has two projects in the works at the entrance to the Tri-Cities Airport and is preparing to expand its Columbia Gorge Hotel in Oregon.
Its $9.5 million Home2 Suites hotel will add 107 rooms to the east of its Courtyard by Marriott, on West Argent Street. Both hotels occupy land A-1 leases from the Port of Pasco.
It is also building a retail complex on North 20th Avenue.
This story was originally published May 26, 2025 at 5:00 AM.