Construction is now underway on a new AC Hotels by Marriott in Kennewick, Washington, signaling a major step forward for the city’s hospitality and economic development. Spearheaded by MHR Capital Group in collaboration with A1 Hospitality Group and Fowler Construction, the project brings the sleek, European-inspired Marriott brand to the Tri-Cities region for the first time.

Strategically located next to the Three Rivers Convention Center (TRCC), the hotel is envisioned as a key part of the broader expansion of Kennewick’s event-hosting capabilities. The TRCC expansion is expected to increase the area’s attractiveness for regional and national events, creating a demand for modern accommodations and supporting infrastructure.

“This development represents more than just a new hotel,” said a spokesperson for MHR Capital Group. “It’s part of a long-term strategy to enhance the Tri-Cities’ ability to attract conferences, tourism, and investment.”

The project is also situated within a Qualified Opportunity Zone, which provides tax incentives to investors under the 2017 Tax Cuts and Jobs Act. This designation is aimed at encouraging economic revitalization in designated low-income areas. Idaho Central Credit Union, in partnership with Bellevue Capital Group, is providing the debt financing for the project.

The hotel is one component of a much larger master plan, which includes over 550 residential units and 200,000 square feet of retail space. Once completed, the development is expected to transform the surrounding area into a vibrant mixed-use destination that supports event tourism, local businesses, and community engagement.

"This project aligns perfectly with our vision for a more connected, more vibrant downtown Kennewick," said a representative from A1 Hospitality Group. "By pairing high-quality lodging with new housing and retail, we’re creating a destination that meets the evolving needs of residents and visitors alike."

The AC Hotel will feature modern amenities tailored to business and leisure travelers, including communal workspaces, a stylish bar and lounge, fitness facilities, and tech-forward guest rooms. The hotel’s aesthetic and design are geared toward “a new generation of travelers seeking sophistication and efficiency in one place.”

Construction is expected to continue into 2026, with the hotel’s opening planned to coincide with key TRCC expansion milestones. As the Tri-Cities region continues to grow, civic leaders and developers alike see this project as a cornerstone in Kennewick’s next chapter.

Originally reported by Hotel News Resource.