Construction on Carlton Street hotel to finish in 2028, more than decade after initially planned: city report By: Joyanne Pursaga Posted: 5:01 PM CDT Tuesday, Jun. 30, 2026

The city expects a hotel eyed to help pay for Winnipeg’s convention centre expansion will be completed in 2028, more than a decade after the major renovation wrapped up.

A $180-million expansion of the convention centre was officially completed in 2016. The initial plan called for a nearby hotel to open the same year, triggering $17 million in new convention centre business and $16 million in tax revenue to support the project.

Instead, a successful hotel proposal did not pan out for years, then the COVID-19 pandemic was blamed for additional delays.

A new city report states a 352-room, $140-million Sutton Place Hotel should finally complete construction at 220 Carlton St. in “late 2028.”

The hotel will be “the largest new luxury hotel built in Winnipeg in decades,” it notes.

“It is big news. The hotel development beside the convention centre on Carlton has been a long time coming.… We really need that hotel to be completed, so it’s good to see the work happening,” said Mayor Scott Gillingham.

“This is obviously good news for the downtown and for the convention centre.”

Coun. Jeff Browaty, city council’s finance chairman, also welcomed the target timeline.

“This is obviously good news for the downtown and for the convention centre. We’ve got a top-tier convention centre, in terms of the amount of leasable space, but one of the challenges we’ve had in terms of the business is the lack of hotel rooms in the immediate vicinity…. (The convention centre’s) business plan was to bring in more out-of-town guests and an extra 352 rooms will certainly do that,” said Browaty (North Kildonan).

The timeline of the hotel has been in flux for years. Northland Properties Inc. acquired the land in 2016 and started construction on the hotel in 2018. A target completion date was once set for 2021.

However, work paused during the pandemic and hasn’t been completed since, the city report states.

City officials expect the hotel to be “transformative,” generating millions of dollars of provincial tax revenues and creating new jobs.

Winnipeg’s municipal government expects to receive about $340,000 in annual property tax revenues from the site, plus $500,000 per year in accommodation taxes, once it’s operating.

“This is likely a very good news story for the city’s finances, when it comes to hotel tax revenue,” said Browaty.

The councillor said the overall timeline to get the hotel in place is disappointing, since it created a financial challenge for the city and convention centre.

“Perhaps there are lessons to be learned here in terms of timing these things and making sure your partner is working on the same time frame as yourself. Regardless, the fact we’re getting these rooms (soon) is definitely encouraging,” he said.

The city has covered more than $12 million in loan payments for the conventions centre’s expansion since 2017, using hotel tax revenue. That includes a $1.3-million payment earlier this year.

The convention centre is required to fully reimburse the city for the loan payments.

Browaty said the new hotel should help the convention centre begin paying the money back.

“I would think that this would certainly help their business enough that it could reduce that dependence,” he said.

A new proposal tied to the hotel calls for city council to provide $3 million for a link that would connect the hotel to the downtown skywalk system and the convention centre, subject to the province paying the same amount.

The mayor said he supports that proposal.

“It’s important that the convention centre, the new hotel, True North (Square) and the other skywalk system throughout downtown Winnipeg is all linked. It makes it convenient for the public, and certainly those who are staying at the hotel, to access the convention centre and other parts of our downtown,” said Gillingham.

If city council approves the proposal, and the province matches the funding, the city would devote $2 million from a previously approved grant linked to the nearby True North Square and a $1-million tax increment financing grant to cover its portion of the cost.

“Progress is underway and this is good news for Winnipeg’s downtown.”

The developer would be required to ensure public access to its addition to the skywalk system.

“Progress is underway and this is good news for Winnipeg’s downtown,” said Gillingham.

Northland Properties did not respond to a request for comment.

joyanne.pursaga@freepress.mb.ca

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