The Sugar Land Marriott is the centerpiece of the $200 million, mixed use Sugar Land Town Square. This thirty-two-acre development includes the 300-room, full-service hotel and conference center with 26,500 sq. ft. of banquet and meeting space as well as office space, retail shops, apartments, structured parking and the new Sugar Land City Hall. It is located at the intersection of US Highway 59 and Texas Highway 6: one of the busiest intersections in Fort Bend County.
The $54.35 million project, which opened in 2003, received public investment (tax increment) totaling $19.3 million (the cost of the conference center and parking structure). The balance of the required funding came from $7.3 million in private equity and mezz debt and $27.75 million in conventional debt. The entire structure was condominiumized with the conference center and parking structure owned by the City of Sugar Land and leased to the hotel owner pursuant to a ninety-nine year lease. The City Lease provides for a nominal base lease payment of one dollar per year, with incentive rent calculated as a percentage of cash flow and/or sale proceeds above an unleveraged 15% cumulative return on private capital.