A dual-brand Tempo by Hilton and Homewood Suites in downtown Raleigh, North Carolina. (Image courtesy Hilton Raleigh Downtown)
Shamin Hotels is planning to tap the bond market to help finance its part of Midtown64, the massive redevelopment of the former Genworth Financial campus in Henrico that’s to include a dual-brand Hilton, part of which will be new to the Richmond market.
The Chesterfield-based hotelier is planning a Tempo by Hilton and Homewood Suites hybrid at the 45-acre project across from Reynolds Crossing that it’s working on with Greenberg Gibbons, a development firm out of Baltimore.
The five-story, 226-room hotel – with 124 rooms under the Tempo brand and 102 under Homewood Suites – is planned to rise beside Interstate 64 adjacent to the northbound Broad Street on-ramp. Shamin purchased the nearly 3-acre parcel from Greenberg Gibbons last December for $1 million.
The Tempo hotel would be one of only a handful that have opened since Hilton launched the brand in 2020. Its other locations currently include New York’s Times Square; Nashville, Tennessee; and in Savannah, Georgia’s historic district. Over 70 more are in development, according to Hilton’s website.
Neil Amin
Shamin CEO Neil Amin said the goal at Midtown64 was to bring a new brand to the Richmond market coupled with an extended-stay brand. He described Tempo as an “upscale lifestyle” brand, while Homewood Suites is targeted for longer-term stays.
“One of the things that the county really wanted is something that is obviously unique for this high-profile location,” Amin said. “Tempo, there’s only six hotels open, and they’re open in iconic neighborhoods. It caters to people who want that authentic, neighborhood experience.”
With Homewood Suites, Amin added, noting the mix of commercial and residential buildings that are also planned at Midtown64, “This is going to be a lifestyle center, so (for) people who want to maybe stay there for an extended period of time, utilize the restaurants, the retailers, we feel like there’s definitely a need for an extended-stay product as well.”
To help finance the hotel, Shamin is looking to tap the bond market via the Henrico Economic Development Authority, which it’s asking to issue up to $26 million in municipal revenue bonds to support the project. An overall cost estimate for the hotel has not been disclosed.
The tax-exempt, non-recourse bonds would be similar to the $150 million in revenue bonds that Shamin arranged for the 12-story Hilton it’s developing at the Springline at District 60 project in Chesterfield. Those bonds were issued through the EDA for neighboring Powhatan County, while the project was structured through a performance agreement between Shamin and the Chesterfield EDA.
The bonds to be issued by the Henrico EDA would likewise adhere to related agreements between the parties. The bonds would provide financing for acquiring, constructing and furnishing the Midtown64 hotel, according to a resolution to be considered by the EDA.
A rendering of Midtown64. (File image courtesy Greenberg Gibbons)
Unlike general obligation bonds that are repaid by the county, the debt on the revenue bonds would be repaid from revenues generated from Shamin’s Midtown64 hotel. The bonds would be repaid over the course of 40 years, with Shamin responsible for satisfying the debt.
Shamin has selected Truist Securities as the underwriter for the bonds. McGuireWoods is Shamin’s bond counsel.
Amin said the bond amount makes up a portion of the project. He said an overall cost projection has not been finalized.
The hotel is planned to include a rooftop cocktail bar and terrace, among other amenities. Amin said construction is targeted to start by the end of this year and would last up to 22 months.
Thomas Builders is signed on as the general contractor, and Nitin Kulkarni, an architect out of Leesburg, is designing the hotel. Amin said Atlantic Union Bank is handling initial financing for the project.
The Henrico EDA is set to consider the bond issuance at its regular meeting Thursday.
Meanwhile, work is well underway at the Midtown64 site, where demolition of parts of the Genworth campus started earlier this year.
Once completed, the half-billion-dollar project will include four apartment buildings with about 1,000 units, nearly 200 for-sale townhomes, a second hotel in a later phase, and hundreds of thousands of square feet of retail and office space, including a Trader Joe’s grocery store.
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