Plans to transform one of Downtown Memphis’ largest hotels into a renovated destination property are moving forward, but questions surrounding financing could delay the project by several months.
The former Sheraton Memphis Downtown Hotel, now known as the Memphis Riverline Hotel, is slated for an approximately $200 million redevelopment. However, city officials and the project’s development team are still working to close a funding gap.
According to a report from the Memphis Business Journal, Memphis Mayor Paul Young discussed the project’s financial challenges during an Oct. 5 media briefing, indicating that city officials are evaluating financing options before presenting a proposal to the Memphis City Council.
“Right now, we’re working through what the financing options look like, and what that structure is going to be,” Young said. “I’m hopeful that at the end of this year, early part of next year, we can bring something to city council for them to consider.”
The Memphis Business Journal reported that the financing process could push back redevelopment work by several months, citing a statement from the City of Memphis.
City Purchased Hotel for $22 Million
The City of Memphis purchased the 590-room hotel at 250 N. Main St. in 2025 for approximately $22 million.
The redevelopment is being led by Carlisle Corp. through a public-private partnership with the city. The project is intended to strengthen the city’s convention and tourism infrastructure while supporting its previous $200 million investment in renovations to the Renasant Convention Center, completed in late 2020.
City officials are targeting 2029 for the hotel’s reopening.
Young said the city has already invested approximately $2 million in design-related work, although he did not provide an exact amount.
Renovation Plans Continue Despite Funding Questions
While financial details remain unresolved, the development team has continued making progress on the hotel’s design.
During a February presentation to 250 North Main LLC, the Downtown Memphis Commission-affiliated entity overseeing the redevelopment, Carlisle representatives reported that the project had completed its conceptual planning phase and advanced to schematic design.
The team is working with Nehmer, a Maryland-based hospitality architecture firm specializing in hotel development and renovations.
David Lewis, Carlisle’s senior vice president of commercial construction, said during the February meeting that the renovated property is expected to contain 596 rooms, slightly more than the hotel’s previous configuration.
Lewis also indicated that the development team expected to establish a more precise construction cost estimate by the end of 2026.
Earlier projections placed the redevelopment investment between $150 million and $250 million, according to the Memphis Business Journal.
The hotel’s future is particularly significant for Downtown Memphis because of its proximity to the Renasant Convention Center. The renovated property is expected to provide lodging capacity for conventions, business travelers and major events.
For now, the project’s anticipated 2029 completion remains the goal, but the timeline will depend partly on whether city officials and Carlisle can reach an agreement on the financing structure.
