Sheraton Atlantic City Proposed for Residential Conversion
Developer Tom Scannapieco seeks $100 million for hotel renovations and 130 new apartments for seniors.
Updated on Sept. 28, 2026 in Hotels
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Should aging convention center hotels be converted into residential apartments?
Developer Tom Scannapieco has proposed a $100 million renovation and partial residential conversion for the Sheraton Atlantic City Convention Center Hotel. The project would include creating 130 apartments for residents 55 and older while updating the remaining 252 hotel rooms.
Why it matters
The developer asserts that the property cannot remain profitable due to a lack of large conventions and requires state tax credits to avoid ongoing annual public subsidies. The hotel faces closure if the necessary funding remains unapproved by the state.
The proposed plan would transform the 502-room facility by converting half of the building into 130 age-restricted apartments and renovating the remaining 252 rooms. The developer plans to construct an upscale lobby alongside these upgrades.
The players
Tom Scannapieco
He is the developer leading the proposed renovation and residential conversion project for the Sheraton Atlantic City Convention Center Hotel.
Marriott International
It is a global hospitality company that currently manages the Sheraton property and has announced upcoming staff layoffs.
New Jersey Economic Development Agency
This state authority is responsible for reviewing and approving the tax credit applications required for the hotel redevelopment project.
The details
LINY Investor LLC, which acquired the hotel in 2020, argues that the current business model is unsustainable without significant structural changes. Marriott International has already signaled the potential impact on staff, announcing plans to lay off 180 employees by mid-December 2026.
Timeline
The hotel originally opened in 1998.
LINY Investor LLC acquired the hotel in 2020.
Marriott plans to lay off 180 employees by mid-December 2026.
Roadmap
This project follows a documented national trend of converting underperforming hotel properties into mixed-use residential housing. By pivoting toward senior living, the developer aims to stabilize the asset against the volatile fluctuations of the convention-driven hospitality market.
Guests planning future stays at the Sheraton should remain aware that Marriott has scheduled layoffs for 180 staff members by mid-December 2026. Travelers may also experience changes in availability as the property awaits the potential approval of state funding for renovations.
The takeaway
The proposed conversion highlights the ongoing struggle to keep large-scale convention hotels profitable without continuous public support. Residents in the area should monitor upcoming state funding decisions that will dictate whether the hotel remains a lodging facility or transitions into a senior living site.
Further reading
For additional context on hospitality trends, explore our Hotels section.
Live Poll
Should aging convention center hotels be converted into residential apartments?
