Arlington, Texas, December 6, 2025
The Sheraton Arlington Hotel will close in February 2026 to facilitate a $410 million redevelopment that will construct a new 500-room hotel with extensive convention space. The project aims to enhance Arlington’s Entertainment District and boost local employment, despite the loss of 110 jobs due to the closure. Demolition of the existing hotel is expected to be completed by September 2026, paving the way for promising economic benefits over the next 30 years.
Sheraton Arlington Hotel to Close, Paving Way for $410 Million Redevelopment
Arlington, Texas – The Sheraton Arlington Hotel is set to close in February 2026, making way for a new $410 million development. This project will replace the existing 311-room hotel with a 500-room, upper-upscale establishment, featuring a minimum of 25,000 square feet of convention and meeting space, and a 735-space parking garage. The demolition of the current hotel is scheduled to be completed by September 30, 2026.
Impact on Employment
The closure will result in the loss of 110 jobs, as the hotel’s management, Urbana Varro Hospitality, has filed a Worker Adjustment and Retraining Notification (WARN) with the Texas Workforce Commission. The layoffs are set to take effect on February 15, 2026.
Project Details
The new hotel is part of a broader initiative to enhance Arlington’s Entertainment District. The development is expected to generate approximately $3.1 billion in economic output over 30 years, with an estimated $711 million in net benefits for the city, Tarrant County, and the Arlington Independent School District. The project is anticipated to create 250 net new permanent jobs and 1,200 construction jobs.
Background
In December 2023, the Arlington City Council unanimously approved the redevelopment plan, which includes demolishing the existing Sheraton Arlington Hotel to make way for the new Loews-branded hotel. This project is part of a series of developments aimed at expanding Arlington’s hospitality and convention facilities, further solidifying its status as a premier destination for tourism and business events.
Related Developments
Loews Hotels has been actively investing in Arlington’s Entertainment District. In 2021, they broke ground on the $550 million Loews Arlington Hotel and Convention Center, which is set to open in early 2024. This hotel will add 888 rooms and 266,000 square feet of meeting space to the area.
Conclusion
The closure of the Sheraton Arlington Hotel marks a significant step in the city’s efforts to revitalize its Entertainment District. The new $410 million development is expected to bring substantial economic benefits and enhance Arlington’s appeal as a destination for both leisure and business travelers.
FAQ
When is the Sheraton Arlington Hotel closing?
The Sheraton Arlington Hotel is scheduled to close in February 2026.
How many employees will be affected by the closure?
The closure will result in the loss of 110 jobs.
What is the new development planned for the site?
The new development is a $410 million project that will replace the existing hotel with a 500-room, upper-upscale establishment, featuring a minimum of 25,000 square feet of convention and meeting space, and a 735-space parking garage.
What are the expected economic benefits of the new development?
The project is expected to generate approximately $3.1 billion in economic output over 30 years, with an estimated $711 million in net benefits for the city, Tarrant County, and the Arlington Independent School District.
When is the new hotel expected to open?
The demolition of the current hotel is scheduled to be completed by September 30, 2026, with construction of the new hotel to commence thereafter.
Key Features of the New Development
| Feature | Details |
|---|---|
| Number of Rooms | 500 |
| Convention and Meeting Space | Minimum of 25,000 square feet |
| Parking Garage | 735-space facility |
| Estimated Economic Output | Approximately $3.1 billion over 30 years |
| Estimated Net Benefits | Approximately $711 million for the city, Tarrant County, and the Arlington Independent School District |
| Permanent Jobs Created | 250 net new positions |
| Construction Jobs Created | 1,200 positions |
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