The New Orleans City Council has unanimously approved a zoning change to pave the way for the Omni Hotel to be built at the old Sugar Mill site across from the Morial Convention Center.
This approval comes after intense public comments earlier in the day.
Opponents of the project urged the council to vote against the zoning change, expressing concerns that public dollars might be used to fund the hotel.
“Why should this project be getting public subsidies and zoning dispensations when New Orleans city workers have been furloughed since January, and the city has been under fiscal regulation by the state of Louisiana since October 2025,” said one opponent.
Convention Center CEO Jim Cook addressed these concerns, stating that while a state tax incentive is being considered, the project is not requesting public dollars from New Orleans. He also said New Orleans will benefit financially from the project.
“The city will have a $5 million permit fee attached to that, that they will get this year. And then over the course of the construction, there’s another $20 million in both state and city tax on the construction materials,” he said. “Once the hotel opens, the city will receive 100% of the sales tax that is generated by the Omni.”
Tourism leaders, including New Orleans and Company, NOCHI and Omni competitor Hilton Garden Inn Convention Center, have voiced their support for the hotel, citing it’s potential to boost the city’s economy and help New Orleans compete with larger cities.
“A new property like this really gives us the oppotunity to protect the business that we currently have, and attract new business and new markets to our city, which ultimately helps to finance the operation of the city. Roughly 50% of the revenue generated for city operations comes from the visitor economy,” Walt Leger with New Orleans and Company said.
However, opponents remain unconvinced, arguing that the project prioritizes profits over community investment. Some also pointed out a lack of guarantees to use union labor.
At a separate Exhibition Hall Authority Economic Growth and Development District meeting, an agreement for a real estate tax stabilization program for the Headquarters Hotel Subdistrict was approved.
The agreement includes commitments by the hotel related to local hiring, payment of property taxes at levels, and participation in the Convention Center’s Small and Emerging Business (SEB) Program goals.
Following the vote, Cook issued a statement:
“Today’s City Council approval of the Omni New Orleans Headquarters Hotel is a major win for our city, our state and the regional hospitality industry. It sends a clear message that New Orleans is open for business and that our city will continue competing for major conventions and events at the very highest level.”
New Orleans Mayor Helena Moreno also issued a statement following the vote:
“I applaud the City Council for its unanimous approval of the Omni Hotel project, a major investment that will strengthen our economy, create jobs, and help drive continued growth in New Orleans.”
The next step in the process involves the city’s law department drafting an ordinance for the council to vote on.
Convention center leaders tell us they anticipate construction to start later this year, and for the hotel to open in 2030. The project would bring 2500 construction jobs over the course of four years.
READ MORE:New Orleans City Council approves zoning change for Omni Hotel project
