Sheraton Arlington Hotel is set to close in early 2026 to make way for a new $410 million hotel by Loews Hotels & Co. The Sheraton, built in 1984 and featuring 311 rooms, will be demolished after the conclusion of the 2026 FIFA World Cup. The new Loews property is expected to open by 2028, according to information from the Dallas Business Journal.
The redevelopment project covers a 14-acre site at 1500 Convention Center Drive and has received financial incentives from both the city of Arlington and the Arlington Economic Development Corporation (EDC). The planned Loews hotel will include 513 rooms, 25,000 square feet of meeting space, and a parking garage with at least 735 spaces. This location is less than a mile from Loews’ existing Arlington Hotel & Convention Center and Live! by Loews properties in the city’s Entertainment District.
Urbana Varro Hospitality Management Company, which manages the Sheraton, has informed the Texas Workforce Commission that operations will cease on February 15. This closure will result in approximately 110 layoffs.
Loews spokesperson Lisa Garland did not share detailed construction timelines but said more information may be announced in January. Marty Wieder, director of the Arlington EDC, confirmed that job losses are linked to redevelopment plans. He also stated: “Displaced workers should find opportunities at other growing hotel properties in the area.”
The financial agreement for this project was approved in 2023. It includes $5 million from the EDC for site improvements, $15 million over seven years dedicated to garage costs, and an additional $20 million from the city over eight years for further garage expenses. There are also grants totaling $3.8 million over ten years and $1.3 million over fourteen years that will become available once the hotel opens.
This initiative comes as part of broader efforts to expand hospitality infrastructure within Arlington’s Entertainment District. Other developments include Caravan Court—a $54 million upscale hotel currently under construction on Division Street—which is scheduled to open ahead of the World Cup in 2026. Additionally, Crowne Plaza Suites Arlington is undergoing a $9 million renovation led by Equinox Hospitality; updates include refurbishing guest rooms and converting its indoor pool into new meeting space.
The city has entered into agreements providing financial support for these projects between now and 2027 as it seeks to strengthen its position as a destination for business events and tourism due to its central location between Dallas and Fort Worth.
