Downtown Hotel Funding

Funding for the construction of the Downtown Hotel is being achieved through the work of a public-private partnership, and a unique Hotel Occupancy Tax reinvestment opportunity made possible with the help of Abilene’s State Representative Stan Lambert, and State Senator Dawn Buckingham.

Just over $43.5 million of the downtown hotel’s total $66,635,000 million cost is being supplied through private fundraising done by the Abilene Convention Center Hotel Development Corporation, a nonprofit Local Government Corporation (LGC); the LGC will raise that money through the issuance of hotel revenue bonds, expected to be payable over 30 years, and the support of two local foundations.

The remaining $23.1 million in funding for the construction of the downtown hotel will finance the convention space within the hotel; $4 million cash on hand, $7.5 million in grants, $3.6 million convention & hotel revenue, and an estimated $8 million through the recapturing of Hotel Occupancy Tax generated by the downtown hotel, and made possible through Texas House Bill 2445.

Hotel & Convention Space Funding Sources

$66,635,000 Total Cost

Hotel FundingConvention Space Funding
$43,535,000Abilene Convention Center Hotel Development Corporation$8,000,000State Revenue


$4,000,000Cash on Hand

$3,600,000Convention & Hotel Revenue
$43,535,000Hotel Total$23,100,000Convention Space Total

How the Hotel Occupancy Tax Works

Hotel Occupancy Tax, or HOT, is a tax hotel owners, operators, or managers must collect when a guest rents a room in a hotel. A state HOT is collected at hotels, along with a local HOT. Thanks to the work of local legislators, Texas House Bill 2445 was passed allowing Abilene to keep the state HOT collected from visitors at its Downtown Hotel for a period of ten years. This unique opportunity will generate an estimated $8 million in revenue for the Downtown Hotel project.

Hotel Visitors Help Fund Hotels

  • The $8,000,000 in State revenue is funded when visitors pay to stay at our Downtown Hotel
  • Hotel Occupancy Tax (HOT) is collected
  • State & local HOT revenue is used to fund the Downtown Hotel