Sheraton Arlington Hotel will close to make way for a new $410 million Loews Hotels & Co. property, according to the Dallas Business Journal. The Sheraton, built in 1984 and offering 311 rooms, will be demolished after the 2026 FIFA World Cup. Construction of the new Loews hotel is expected to finish by 2028.
The project will transform 14 acres at 1500 Convention Center Drive and is backed by incentives from both the city of Arlington and the Arlington Economic Development Corporation (EDC). The current Sheraton is located less than a mile from Loews’ existing hotels in Arlington’s Entertainment District.
The planned Loews hotel will include 513 rooms, about 25,000 square feet of convention and meeting space, and a parking garage with at least 735 spaces. Urbana Varro Hospitality Management Company, which manages the Sheraton, has notified the Texas Workforce Commission that the hotel will close on February 15, resulting in 110 layoffs.
Loews spokesperson Lisa Garland declined to provide detailed construction timelines but indicated that more information may be announced in January. Marty Wieder, director of the Arlington EDC, confirmed that layoffs are part of redevelopment plans. He said: “Displaced workers should find opportunities at other growing hotel properties in the area.”
Financial support for this project includes $5 million from the EDC for site improvements, $15 million over seven years for garage costs, and $20 million from the city over eight years for additional garage expenses. Once operational, further grants totaling $3.8 million over ten years and $1.3 million over fourteen years will be provided.
This development is part of ongoing efforts to expand hospitality infrastructure in Arlington’s Entertainment District. Other projects include Caravan Court—a $54 million upscale hotel currently under construction on Division Street—which is scheduled to open by the time of the World Cup in 2026. In addition, Crowne Plaza Suites Arlington is undergoing a $9 million renovation aimed at updating guest rooms and common areas while converting its indoor pool into meeting space; this project also receives city support through a ten-year agreement worth $3.25 million between 2025 and 2027.
These investments reflect Arlington’s goal to strengthen its position as a destination for business events and tourism due to its location between Dallas and Fort Worth.
