Plans are moving forward to partially convert Atlantic City’s Sheraton Hotel into senior housing.
The proposed $100 million redevelopment would transform 130 of the hotel’s 502 rooms into apartments.
Additionally, the project would modernize 252 existing hotel rooms. Some of those rooms have not received major updates in decades.
The Sheraton connects directly to the Atlantic City Convention Center, making it an important hospitality property within the city.
However, the redevelopment still faces a significant financing hurdle.
The property owner is seeking tax credits through New Jersey’s Aspire Program to help close the project’s funding gap.
The New Jersey Economic Development Authority oversees the program.
Notably, Aspire provides gap financing for eligible commercial, residential, and mixed-use redevelopment projects across New Jersey.
Atlantic City projects can qualify for enhanced incentives because of the city’s designation under the program.
Without additional financial support, the future of the Sheraton remains uncertain.
Marriott currently operates the property through a lease with the building’s owner.
The operator could close the hotel on December 15 if the project does not secure the necessary assistance.
As a result, the redevelopment carries implications beyond the proposed senior housing component.
The project would preserve a large hospitality presence while introducing a new residential use to the property.
Furthermore, modernizing hundreds of hotel rooms could help reposition the aging asset for future demand.
The proposal also reflects a broader adaptive reuse strategy for older commercial properties.
Rather than eliminating the hotel use, the redevelopment would combine hospitality and residential space within the existing building.
If financing moves forward, the project could represent a significant reinvestment in Atlantic City real estate.
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