Atlantic City’s Economic Alert: The Looming Crisis of the Sheraton Convention Center Hotel

Atlantic City is currently standing at a critical economic crossroads. A recently leaked letter from Atlantic County Executive Dennis Levinson to New Jersey Governor Mikie Sherrill has sounded the alarm regarding a potential disaster for the region’s tourism and business infrastructure: the possible closure of the Sheraton Atlantic City Convention Center Hotel before the end of the year.

The High Cost of Losing a Sister Hotel

For any major city, the synergy between a convention center and a primary headquarters hotel is vital. Levinson emphasizes that without the Sheraton, attracting high-profile visitors and large-scale conventions to Visit Atlantic City will become an uphill battle.

The stakes are incredibly high, as the visitor economy is the lifeblood of the region. According to the report, 30% of Atlantic County’s employment is directly supported by tourism. Visitors expect seamless transitions between their lodging and event spaces—a convenience that would vanish if the Sheraton closes its doors.

A Million-Dollar Drain: The Current State of Affairs

The impact is not just theoretical; it is already being felt in the balance sheets. Data indicates that Atlantic City has already lost over $107 million in new convention business. The reasons are clear and concerning:

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• Lack of Room Inventory: The city lacks a headquarters hotel that meets the rigorous requirements of professional event planners.
• Infrastructure Deficits: The Atlantic City Convention Center is struggling with outdated amenities, including poor cellular connectivity, lack of affordable data, and missing digital signage.
• Competitive Disadvantage: These shortcomings place the city at a severe disadvantage when bidding against other national destinations for lucrative meetings and conventions.

The Great New Jersey Divide: Meadowlands and Asbury Park

Perhaps the most frustrating point raised by Levinson is the perceived disparity in state investment. While Atlantic City struggles to maintain its core infrastructure, the state of New Jersey appears to be pivoting its focus elsewhere.

Levinson highlights that the state is pursuing a massive 300,000 square foot convention facility at the Meadowlands. Furthermore, substantial tax credits—amounting to $75 million from the NJDCA—have been awarded for renovations to the Asbury Park Convention Center, with additional requests for historic property reinvestment through JEDA.

What This Means for the Future of Atlantic City

The message is clear: for Atlantic City to remain a competitive player in the New Jersey economy, it requires more than just a name; it requires modern infrastructure and strategic support. The potential loss of the Sheraton Hotel is not just about one building—it is about the survival of the city’s status as a premier destination for business and leisure.

Will the state intervene to save the Sheraton and revitalize the Convention Center, or will Atlantic City continue to lose ground to its neighbors?