The Washington Business Journal reports that the people behind the planned $550 million, 1,100-room hotel convention center headquarters hotel slated for Ninth Street and Massachusetts Avenue have been unable to secure private financing. As a result, the Washington Convention Center Authority is seeking authority from the city council to sell as much as $750 million in bonds to cover the price of the hotel, interest during construction, insurance and other costs.
Although not the focus of the article, the article also mentions that Quadrangle Development Corp. and Capstone Development are still separately planning to build a Courtyard by Marriott at the northwest corner of Ninth and L Streets, NW (unlike in February 2008, the article does not mention planning for a Residence Inn also). I have been unable to find anything further on the planned development by Capstone and Quadrangle.
I am more eager to see the Courtyard by Marriott built than the mega-hotel, as the Courtyard by Marriott will occupy several highly visible, currently-vacant buildings on Ninth Street. I think these buildings are a major deterrent to attracting convention center pedestrian traffic north on Ninth. Here's to hoping it moves forward soon!