A proposal from the Worcester Polytechnic Institute (WPI) to buy two hotels and turn them into student housing has drawn the ire of city officials who worry the move will result in a loss of annual tax revenue.
WPI is looking to purchase the Hampton Inn & Suites at 65 Prescott St. and the Courtyard by Marriott at 72 Grove St., according to a letter sent to the school’s president, Grace Wang, and chair of the Board of Trustees, William Fitzgerald, from the Worcester Economic Development Coordinating Council (EDCC).
The two hotels are located within the Gateway Park redevelopment district, a 55-acre development that features numerous businesses and offices, according to WPI’s website.
The letter — signed by EDCC members Mayor Joseph Petty, Worcester City Manager Eric D. Batista, Worcester Regional Chamber of Commerce President Tim Murray, President and Chief Executive Officer of the Worcester Business Development Corporation Craig Blais and President and CEO of the Massachusetts Biomedical Initiatives Jon Weaver — read that the purchase of the hotels could result in a loss of $758,000 annually in local property taxes and $850,606 in annual hotel and motel tax revenue. Additionally, the letter reads that WPI’s purchase could result in 25% of the city’s hotel room capacity and the loss of 100 jobs.
“The Gateway Park Project was never at any point about utilizing public resources to solely facilitate WPI’s campus expansion or student housing needs, taking property off of the city’s tax rolls, and further burdening Worcester’s residential and commercial industrial taxpayers,” the letter reads.
The letter went on to read that the council was “stunned” to learn that WPI has been considering purchasing the two hotels for months and that the plans were not mentioned in previous meetings and asked why the school did not acquire space from the adjacent Becker College, which closed in 2021.
During a City Council meeting on Aug. 27, Batista said the city spoke with WPI representatives about the purchase and said he hopes a solution can be found.
A spokesman for Worcester City Manager Eric Batista told MassLive they had no further comment on the matter at this time.
District 2 Councilor Candy Mero-Carlson criticized WPI’s proposal during the meeting — arguing the hotels were never supposed to be used as dormitories.
“This certainly was not partnership,” Mero-Carlson said. “I just don’t get it. I just don’t understand how you think you can do something this big that has such an impact on our city.”
WPI confirmed in a letter written by Executive Vice President and Chief Financial Officer Michael Horan and Senior Vice President for Enrollment Phillip Clay to the WPI community dated Aug. 26. that the university was looking to purchase the hotels for student housing.
The letter reads that the proposed purchase of the hotels is to address a projected student housing shortage. While WPI guarantees on-campus housing for all first-year and transfer students, there is not enough space for upper-level students, according to the letter.
“Many of you live in the city and therefore know that the Worcester housing market is extremely tight, with ever-increasing apartment rents and a vacancy rate of 1.7%, one of the lowest in the country,” the letter reads. “This situation puts considerable strain on our students’ ability to find affordable housing and adds pressure to the city’s housing crunch. Our plans to increase our on-campus housing will not only help our students, it will also create space in the market for families and other renters impacted by the housing shortage.”
After the purchase of the hotels, both will remain on the city’s property tax rolls and generate hotel tax revenues for the city while they continue to operate as hotels, the letter reads. Additionally, the letter states that WPI does not foresee a loss of any jobs for those currently employed at the hotels and plans to maintain the current management company.
The Hampton Inn will transition into student housing in 2026, while the Courtyard Marriott will continue operations as a hotel until 2030, according to the letter.
A specific date of when the hotels will be purchased was not stated in the letter and a spokesperson from WPI declined to offer any additional comment to MassLive.
