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Plans to convert the former Archdiocese of New Orleans office building into a hotel are back on track two years after the project stalled.
Nola.com reported last week that developer Sam Mohd secured financing and permits from the city to move the New Orleans construction project forward. Mohd purchased the building from the Archdiocese in 2022 but postponed construction due to rising interest rates and construction costs.
Mohd and partner Rohan Dawra plan to convert the 12-story, 115,000-square-foot building into a hybrid hotel featuring 39 apartment-style units, each with four or five bedrooms. The renovation is projected to cost nearly $19 million and take approximately 18 months to complete.
Positive Developments for Downtown
The renovation of the 63-year-old building will significantly boost the southwest corner of downtown, an area that has seen inconsistent redevelopment over the past decade. Since purchasing the property, Mohd and Dawra have faced challenges, including code violations for blight, trash, and graffiti.
A lobby image of the former Archdiocese of New Orleans office building. The structure was built in 1962 and is in the process of being converted into a hybrid hotel. Image: McEnery Co.
“We’re addressing those concerns,” Mohd stated, adding that they have committed to cleaning up the building and fostering good relations with the community. “We were just so focused on the financing and couldn’t do anything until that was in place,” he added.
Transforming an Office Space
Initially built in 1962 for an insurance company, the building also housed Catholic charities and offices in recent decades. However, when the Archdiocese filed for bankruptcy protection in 2020, the building was put up for sale. Mohd and Dawra purchased the property and its attached parking garage for $8.3 million, or about $106 per square foot.
Two perspectives of the former Archdiocese of New Orleans building at 1000 Howard Ave, which is undergoing a conversion from office to hotel. Image: McEnery Co.
Developers noted that after the sale, the redevelopment project faced setbacks due to rising interest rates and construction costs. By mid-2023, Mohd indicated that they were reevaluating their plans. They eventually secured financing from Johnson Controls Capital, a division of the building product technology, software, and services company.
Optimistic Outlook
Once completed, the hotel is expected to appeal to group travelers. The hotel, developers said, will feature multiple bedrooms within single units, similar to short-term rentals but managed under one roof. In response to concerns about compliance with city hotel regulations, Mohd and Dawra amended their plans to include a 24-hour front desk. The hotel, operated by Vcay, will not feature a bar or restaurant but will include a pool.
“The market has changed since 2022, and, honestly, it’s for the better in our case,” Mohd noted. “We are seeing great numbers from group travelers.”
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