What Happens If Atlantic City Loses the Sheraton?

Hey Folks,

What happens with the Sheraton Atlantic City Convention Center Hotel matters to a whole lot more people than the guests checking in. It matters to the people working in our hotels, restaurants, shops and local businesses. It matters to Atlantic City’s future. And I want you to hear directly from somebody who works every day to bring that business here.

Visit Atlantic City President and CEO Gary Musich joined me on The AC Mike Show, and we talked about why the Sheraton is so important to our convention business. We also got into the experiences bringing visitors to South Jersey and what it takes to keep them coming back.

Watch the Full Episode—or Go Straight to the Discussion

The video below is our full interview, starting from the beginning. You can watch it right here or watch the entire episode on YouTube.

If you want to hear the parts about the Sheraton first, use these links:

Both links take you to a specific point in the full episode. They are not separate clips—the interview continues playing from there, and you can rewind to the beginning anytime.

Full Episode: The AC Mike Show with Gary Musich
Press play below to watch the entire conversation from the beginning.

Why One Hotel Can Make Such a Big Difference

A convention needs more than meeting space and a date on the calendar. Organizers have sponsors, exhibitors and attendees to accommodate. They need hotel rooms, convenient access and a setup that makes doing business easy.

As Gary explained during our conversation, “The exhibitors and sponsors want to be connected.” Those folks are coming here to work. Being connected to the Convention Center is a big part of what they’re looking for.

And that headquarters hotel helps bring business to other properties, too. Gary explained that major events can use five or six hotels around town, sometimes more. The people staying in those rooms also eat in our restaurants, shop in our stores and spend money throughout the community.

That’s why the Sheraton’s future reaches well beyond its own front doors.

Gary’s Point: You Have to Qualify Before You Can Compete

One of the most important parts of our conversation was Gary’s explanation of hotel room requirements. Some large convention bids call for a headquarters hotel with at least 500 rooms to accommodate exhibitors and sponsors.

His point was direct: “I can’t even bid if it doesn’t have that.”

Gary warned that reducing the Sheraton to roughly 250 rooms could eliminate eligibility for about 70% of the bids his organization could otherwise pursue. That’s his assessment of the potential impact on bidding opportunities, and it deserves attention.

Think about that. Atlantic City could have the meeting space, restaurants, entertainment, Boardwalk and beach an organization wants, but still miss the opportunity because it doesn’t meet a requirement in the bid.

Gary also said his team is already responding to bids for 2032. This business is planned years ahead. Decisions about our convention infrastructure today can affect the visitors and jobs coming here well into the future.

Hear Gary explain the 500-room requirement at 19:49 in the full episode. The interview continues playing from that point.

Dennis Levinson Raises the Alarm

Atlantic County Executive Dennis Levinson took these concerns to Governor Mikie Sherrill in a September 22 letter.

Levinson wrote that “The visitor economy directly supports 30% of Atlantic County’s employment” and emphasized the importance of quality accommodations near convention activities.

He also cited Visit Atlantic City data identifying more than $107 million in lost new convention business tied to headquarters hotel requirements. That figure refers to reported business already lost—not an estimate of what a future Sheraton closure would cost.

His letter raised concerns about Convention Center technology and amenities, along with potential competition from a proposed 300,000-square-foot convention facility in the Meadowlands.

For our community, the question is straightforward: how do we make sure Atlantic City’s existing convention infrastructure gets the support it needs to compete?

A Renovation Plan—and a Question About Room Capacity

WHYY’s September 29 report explains the competing positions. The proposed $100 million renovation would leave 252 hotel rooms and create 130 apartments for residents 55 and older.

Developer Tom Scannapieco says that approach would provide reliable revenue and avoid an ongoing annual public subsidy. Tourism officials, however, argue that the remaining hotel inventory would be too small for a viable convention headquarters hotel.

Scannapieco told WHYY that construction cannot begin without state tax credits. The owners have warned of a possible December closure if funding does not come through.

WHYY also reported differing accounts of earlier ownership discussions: Scannapieco described efforts to encourage CRDA ownership, while CRDA said it never received a substantive offer to sell.

Keeping the property operating and preserving the capacity to attract conventions are both central to this discussion.

For additional coverage, read The Press of Atlantic City’s report on efforts to save the Sheraton and its coverage of Levinson’s letter to the governor.

This Is the “Work” in Live-Work-Play-AC

You hear me talk about Live-Work-Play-AC all the time. Convention business is an important part of that work. It brings customers into our community during the week and beyond the summer season. It supports the people who make this town run.

Gary and I also talked about giving visitors more reasons to stay another night. Golf, wineries, breweries, boating and the experiences across South Jersey all have a role to play. Give people more to enjoy, and you give them more reasons to stay and return.

That’s the kind of future I want for Atlantic City: a destination that keeps building on everything we have to offer, with the facilities and partnerships needed to bring that business here.

The Sheraton is an important piece of that picture. If you haven’t heard Gary explain it, take a few minutes and watch our conversation.

Watch, Share and Help Us Grow

Watch the full Gary Musich episode from the beginning on YouTube. Share it with a friend, coworker or anybody who cares about Atlantic City’s future. While you’re there, subscribe to The AC Mike Show so you don’t miss our next conversation.

And please pass this newsletter along, too. Every share helps us reach more people and shine a brighter spotlight on the businesses, people and stories that make South Jersey special.

If someone forwarded this newsletter to you, visit ACMikeNJ.com, click Newsletters and join our community.

Thanks for being part of it!

Live-Work-Play-AC!
See you on the 48

AC Mike

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