WORCESTER—Worcester Polytechnic Institute (WPI) has finally broken its silence regarding its controversial plan to purchase and convert two Worcester hotels into student housing, a move that sparked significant backlash from city officials and business leaders.
In a letter sent a couple of weeks ago to WPI President Grace Wang and the university’s board of trustees, Mayor Joseph Petty, City Manager Eric Batista, and other top business leaders voiced their dismay over the institute’s plans to acquire the Hampton Inn & Suites on Prescott Street and the Courtyard Marriott on Grove Street, both located in the city’s Gateway Park area.
The letter, also signed by Worcester Regional Chamber of Commerce President Tim Murray, Worcester Business Development Corporation President Craig Blais, and Massachusetts Biomedical Initiatives President Jon Weaver, strongly voiced concerns that the conversion of these hotels into dormitories could result in significant losses in tax revenue and hinder the city’s development efforts.
“We were collectively stunned to learn that WPI has been exploring for many months the possibility of acquiring the two hotels in Gateway Park for student housing,” the letter stated. The city leaders also argued that the move could cripple the local entertainment industry, disrupt the city’s strategic development in the area, and negatively affect Worcester’s tourism industry.
In response to the criticism, WPI on Monday, Aug. 26, sent a detailed letter to its community, explaining the rationale behind the decision and addressing the concerns raised. WPI acknowledged the frustrations but emphasized that the acquisition was part of a long-term strategy to address a looming student housing shortage.
“For many years, we have been exploring strategies to address a projected student housing shortage in ways that will provide our students with affordable, accessible, and desirable housing options,” WPI stated. The letter also pointed out the challenges faced by students in securing affordable housing in Worcester’s tight rental market, which has a vacancy rate of just 1.7 percent, one of the lowest in the nation.
According to the letter, WPI’s plan involves continuing to operate both hotels as they currently do, with no immediate job losses expected for hotel staff. As part of the plan, the Hampton Inn would be converted to student housing in 2026, while the Courtyard Marriott would remain a hotel until at least 2030.
The university also addressed concerns about the impact on the city’s tax base, assuring that both properties will remain on the city’s property tax rolls and continue generating hotel tax revenues until their conversion.
WPI highlighted its long-standing financial contributions to the city through its PILOT (payment in lieu of taxes) agreement, noting that it currently pays more than $815,000 annually, with total contributions expected to reach approximately $18 million by 2034.
The letter also emphasized WPI’s broader impact on the community, including millions of dollars in grants and scholarships for Worcester residents, significant local spending, and various community service initiatives.
“WPI is strongly committed to our home city, and we will continue to partner with Worcester to make this a hub of education, research, innovation, and entrepreneurship,” the letter concluded, signaling the university’s desire to maintain a collaborative relationship with the city despite the recent tensions.
As WPI prepares to move forward with its plans, the university promised to keep the community updated and reiterated its commitment to being a good neighbor and partner to Worcester.
The Worcester Guardian reached out to City Manager Eric Batista and Mayor Joe Petty for comment. The city manager declined to comment.
Petty sent the Worcester Guardian the following statement in response to WPI’s letter:
“We received the letter from WPI with insight on why they are hoping to move forward with purchasing the Hampton Inn and Courtyard Marriott on Prescott Street. While I can appreciate the perspective of the university and their increasing needs for student housing, I maintain that communication and transparency are critical when making drastic changes to the community’s landscape.
The City of Worcester has always taken pride in its ability to work collaboratively toward the goal of improving the community collectively. I do not feel that the spirit of the agreement to work together was honored in WPI’s decision to acquire the hotels, and I fear that the consequences of these actions will be paid by our taxpayers. The city will now have to find a way to supplement losing 25 percent of the city’s hotel room capacity and lose hundreds of thousands of dollars in property tax and hotel/motel tax revenue.
I hope that we can move past this issue together, as the city manager has started meeting with WPI to find a solution. I am looking forward to the city manager and his administration coming to a collective agreement with WPI soon.”
Charlene Arsenault can be reached at carsenault@theworcesterguardian.org
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