Milwaukee Weighs Financing Options for $300M Convention Center Hotel

Public-private partnerships or direct public ownership could be required to make the project financially viable.

Apr. 1, 2026 at 7:05pm

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A new convention center hotel in downtown Milwaukee could cost over $300 million, and would likely require significant public incentives and potentially direct public ownership, according to presentations made to a special committee of the Wisconsin Center District. The committee is evaluating whether to move forward with a hotel project that could include around 650 rooms connected to the Baird Center.

Why it matters

Convention center hotels are often not financially viable for purely private development due to high construction costs. Most such projects in peer cities rely on public-private partnerships or direct public ownership to make the economics work, though this also means the public sector bears more of the risk.

The details

Estimates presented to the committee suggest the project could cost between $325 million and $455 million, reflecting industry-wide construction costs of $500,000 to $700,000 per room. To make the project financially viable, it would likely require either a public-private partnership with public subsidies, or direct public ownership where a government entity issues bonds to finance construction and hires a developer in a fee-based role.

  • The Wisconsin Center District special committee has one more meeting on April 16 before presenting its findings to the full board in May.
  • The committee met in closed session on April 1 to 'deliberate the purchasing of public properties, the investing of public funds, or conducting other specified public business.'

The players

Wisconsin Center District

The special committee of this organization is weighing whether to move forward with a convention center hotel project in downtown Milwaukee.

Matthew Avila

An analyst with Hunden Partners who presented financing models for similar convention center hotels in other markets.

Hans Detlefsen

An analyst with Hotel Appraisers & Advisors LLC who discussed the challenges of financing convention center hotels and the pros and cons of public ownership versus public-private partnerships.

Bob Bauman

A member of the Wisconsin Center District special committee and the downtown alderman, who noted it could take several years for a convention center hotel to break ground, aligning with the district's ability to borrow the necessary funds.

Marcus Corp. and Jackson Street Holdings

The two largest owners of hotels in downtown Milwaukee, who have expressed concerns that a new convention center hotel would negatively impact their existing properties.

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What they’re saying

“They're not something that the private sector is just going to do with the cost of capital and the cost of construction. They don't pencil out. But there often are good reasons for investing or doubling down on the tourism and convention industry or district redevelopment, and that's where we tend to see these projects happening.”

— Hans Detlefsen, Analyst, Hotel Appraisers & Advisors LLC

“If it is a project that represents a signal that we are continuing to invest in our downtown, and we're doubling down, and we're in this for the long term, then, yes, those cities that have that context often tend to see a correlation with these investments and growth for everybody. But if you were just in isolation to add 600 rooms of supply and not really bring those other things along, then I would say, no, the math really isn't going to support that.”

— Hans Detlefsen, Analyst, Hotel Appraisers & Advisors LLC

What’s next

The Wisconsin Center District special committee will meet again on April 16 to receive a presentation from its financial adviser, Baird, on the district's capacity to sell bonds to finance a convention center hotel project. The committee will then present its findings to the full board in May.

The takeaway

Financing a large convention center hotel project in Milwaukee will likely require a creative public-private partnership or direct public ownership, as the economics do not pencil out for purely private development. The city and state will need to carefully weigh the risks and potential benefits of such a significant public investment.