Sheraton Arlington Hotel will close to make way for a new $410 million hotel developed by Loews Hotels & Co. The existing Sheraton, a 311-room property built in 1984, is set to be demolished after the 2026 FIFA World Cup. The new Loews hotel is expected to open by 2028 and will be located at 1500 Convention Center Drive on a 14-acre site.
The Dallas Business Journal reports that the project has received support from both the city of Arlington and the Arlington Economic Development Corporation (EDC). Incentives include $5 million from the EDC for site improvements, $15 million over seven years for a parking garage, and $20 million from the city over eight years for additional garage costs. Further grants totaling $3.8 million over ten years and $1.3 million over fourteen years will be provided once the hotel opens.
Urbana Varro Hospitality Management Company, which currently operates the Sheraton, has informed 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 an announcement may come in January. Marty Wieder, director of the Arlington EDC, confirmed that layoffs are linked to redevelopment plans and commented on employment prospects: “Displaced workers should find opportunities at other growing hotel properties in the area.”
The planned Loews property will offer 513 rooms, 25,000 square feet of convention and meeting space, and a parking garage with at least 735 spaces. It will be situated less than a mile from Loews’ existing Arlington Hotel & Convention Center and Live! by Loews in Arlington’s Entertainment District.
This development is part of broader efforts to expand hospitality infrastructure in Arlington. Other projects underway include Caravan Court—a $54 million upscale hotel with 145 rooms on Division Street—scheduled to open before the World Cup in 2026. In addition, Crowne Plaza Suites Arlington is undergoing a $9 million renovation that will update its rooms and convert its indoor pool into new meeting space; this project is supported by a ten-year agreement with up to $3.25 million from the city between 2025 and 2027.
These initiatives reflect Arlington’s strategy to strengthen its position as a destination for business events and tourism due to its location between Dallas and Fort Worth.
