‘Investment we need’: mayor announces proposal to turn Marlborough Hotel into housing

Winnipeg’s mayor hopes a once-proud downtown hotel can return to glory by transforming it into 300 housing units.

Mayor Scott Gillingham announced a plan for the Marlborough Hotel, at 331 Smith St., during his annual State of the City address.

“The Marlborough Hotel has had a long history in our downtown, but it has seen better days. Right now, it’s sitting empty but that is about to change,” Gillingham told more than 1,000 people gathered at the convention centre Thursday.

The mayor said the proposal should bring the building, which opened in 1914, “back to life.”

“It’s exactly the kind of investment we need,” he said.

The hotel triggered headlines following an incident on Dec. 25, 2023. On that date, police allege a woman tried to stab a hotel staff member before she was restrained. A video posted online showed the woman restrained with zip-ties, with her arms behind her back, as staff prevented her from leaving the lobby.

About four weeks later, dozens of protesters gathered in the hotel to oppose the citizen’s arrest, including some who stormed the basement, smashed alcohol bottles, flipped furniture and emptied lockers.

The hotel closed to the public on Jan. 24, 2024 and has not reopened since.

The new development at the site would create a tower with 307 apartments, including 40 or more affordable units, and some commercial space on its ground floor, said Rochelle Squires, chief executive officer of CentreVenture Development Corporation.

Squires said the city will be asked to approve a $5-million housing accelerator fund grant (from Winnipeg’s share of that federal fund) to support the $48-million project.

“The Marlborough Hotel has had a long history in our downtown but it has seen better days. Right now, it’s sitting empty but that is about to change.”

“Winnipeg has 1,500 historic buildings in our downtown and surrounding areas and, sadly, 15 per cent of those are vacant. And, so, we’re really going after the (vacant heritage) buildings to find conversion projects for them,” she said.

Squires said the property’s owner had been working to reopen a hotel before shifting his focus to housing.

If city council approves the plan, the project would be required to obtain a building permit by Nov. 1 to claim the housing grant.

Squires said the grant is key to ensuring the project’s viability, noting heritage buildings can sometimes prove “a developer’s nightmare,” due to higher material costs and extra steps to get projects approved.

Loren Remillard, president of the Winnipeg Chamber of Commerce, said he believes the development will be “transformational” for the area.

“The Marlborough, a major presence in our downtown, is now going to go from being a shuttered building to a place of hope, residential opportunity for people, bringing more people to our downtown to not just work, but actually live,” said Remillard.

Gillingham also announced that 7-Eleven is looking to expand in Winnipeg.

“We all know that Winnipeg takes pride in being the Slurpee capital of the world. Well, I spent some time with the 7-Eleven Canada folks last week and they’re looking to expand their brand in Manitoba, including several new franchise locations right here in Winnipeg,” he said.

The announcement comes after 7-Eleven raised alarms about rampant theft at some Winnipeg stores. In August 2024, city councillors said the company warned up to 10 of its convenience stores could shut down due to the issue.

The company closed at least six Winnipeg stores by early 2025, without confirming the reasons why each one shut down.

Remillard said the company’s plans indicate progress, noting many Winnipeggers viewed the store closures as a vote of “non-confidence” in the city.

“What today’s announcement signifies is that’s not the case, that 7-Eleven … (is) going to double down on their efforts here in the city. So, I think it’s kudos to all those involved that have really worked to address some of those issues on crime (and) safety,” he said.

The mayor told his audience he’d also like to build off recent Winnipeg Transit investments in the future.

“The conversation we should be having is about which corridors will be first converted to light rail,” he said.

“Winnipeg has 1,500 historic buildings in our downtown and surrounding areas and, sadly, 15 per cent of those are vacant.”

City council has debated light rail transit since at least the 1970s, at times noting the potential cost as a key barrier.

In 2023, a Winnipeg Transit manager estimated it could cost about $2 billion to $5 billion to create a 20-kilometre light rail transit route.

Gillingham told media Thursday that Transit’s switch to a spine-and-feeder network better prepares the city for that type of transportation. The concept includes direct spines along major corridors that are supported by a network of feeder routes throughout the city.

The main bus corridors, combined with efforts to attract larger housing developments along them, should make light rail more feasible in the future, he said.

“I see that being very much a possibility. I don’t have a date for that,” Gillingham told reporters.

The mayor also promised to grow the city’s aviation, aerospace and defence sectors to create a unified “sky economy.” That would include attracting as much federal investment as possible, as Ottawa ramps up its defence spending.

“Over the next year, I will take at least one concrete step every month to advance this effort,” said Gillingham.

Thursday’s event marked the mayor’s last State of the City address prior to the Oct. 28 municipal election. A political expert said the speech appeared to reflect that fact.

“It was a very bullish presentation by the mayor, almost like a pre-election speech. I mean, he did touch on all the key elements of civic politics, on crime and safety, on economic expansion… So, I would say it was a strong speech by the mayor,” said Christopher Adams, an adjunct professor of political science at the University of Manitoba.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga