Hilton beats out Marriott for hotel to serve Broward Convention Center

Promising an iconic waterfront tower, Hilton bested Marriott on Tuesday for the right to build a 1,000-room upscale hotel that will serve the Broward County Convention Center.

Tourism executives hope Hilton's selection ends a two-decade struggle to ensure conventioneers a nearby place to stay. The hotel is to be built on the northern edge of Port Everglades just off 17th Street in Fort Lauderdale -- with no commitment of taxpayer money.

Details of the deal between county commissioners and Hilton's development team are to be ironed out by February. One major hurdle lies ahead as well -- winning approvals from Fort Lauderdale, which has been concerned about traffic and has objected to the size of similar projects.

"A tale that began in 1989 now has a happy ending," said Nicki Grossman, president of the Greater Fort Lauderdale Convention and Visitors Bureau. "I absolutely believe that. We have a committed hotel development team and a committed Board of County Commissioners. Everything we were lacking in the past, we have today."

County analysis of the two competing proposals priced Hilton's hotel as $100 million less than Marriott's: $398.2 million compared with $506.8 million. Hotel consultants told county officials that Hilton's financing and construction costs were lower even though Marriott disputed the degree of the differences.

In the end, the decision came on a 6-4 vote by a county contract negotiating committee. Grossman was joined by Port Director Phil Allen and commissioners Ken Keechl, Suzanne Gunzburger, Kristin Jacobs and Stacy Ritter in favoring Hilton. Mayor Josephus Eggelletion and commissioners Lois Wexler, John Rodstrom and Ilene Lieberman favored Marriott.

The convention center hosts about 280 events a year and relies on as many as 50 hotels to provide rooms to meeting attendees. Tourism officials have long maintained that the lack of an on-site hotel has driven away business, and some of the center's largest conventions have expressed concern about returning because they are growing and need a convenient and reliable place to stay.

Hilton's plan is for a 27-story building that rises in a series of waves undulating toward the waterfront in a style that its architects said creates a "signature image through its whimsical silhouette." The hotel would be oriented so all rooms have a view of the Intracoastal Waterway.

The hotel is to include an infinity-edge pool overlooking the water, outdoor dining and a 12,000-square-foot spa. Visitors would arrive at the hotel by circling around the fountain in front of the convention center.

In their bid, Hilton executives projected opening in mid-2011 with room rates averaging $224 in the first full year of operation.

Hilton proposed the county issue tax-exempt bonds to finance construction, which it and its partners would then buy. That would forego the traditional route of lining up underwriters and investors, a step that Hilton said could be problematic given recent troubles in the financial markets.

The deal was the subject of a heavy behind-the-scenes lobbying war with both sides touting lengthy experience running similar hotels around the country.

Marriott offered 1,000 rooms spread over a two-tower structure that would reach 33 stories with a more limited mix of restaurants, meeting rooms and health facilities. Its room rates would have averaged $266 in the first full year of operation.

County officials said the details of the plan could change significantly in the course of negotiating permits with the city of Fort Lauderdale. Although they said they saw Marriott and Hilton as equals, the majority favored Hilton because of its vision for the hotel and a feeling that the hotel was more likely to be built on schedule.