WPI Community Update: Hotels Purchase

Department(s):

Finance & Operations

Community,

We are writing with an update: WPI has officially purchased the Hampton Inn at 65 Prescott Street and the Courtyard Marriott at 72 Grove Street, two buildings adjacent to our Gateway Park properties. We believe the decision to acquire the hotels benefits both WPI and Worcester, and we will continue to have open communication with the City to ensure this purchase provides collective benefits and meets shared goals.

These properties will provide much needed high-quality affordable housing options for our growing student population, ensuring a safe, accessible, and well-maintained environment that supports academic success. In addition, by opening more campus-run housing for students, more rental properties in Worcester will be available to families and others seeking affordable housing, alleviating some pressure on the local housing market. The purchase of these hotels will also contribute to Worcester’s economic vibrancy. 

As a reminder:  

  • Initially, both properties will continue to operate as hotels, with the same capacity.
  • We have retained the current management company and all of the hotels’ employees.
  • Both buildings will remain on Worcester’s property tax rolls and will generate hotel tax revenues for the City while they continue to operate as hotels.  
  • We plan to transition the Hampton Inn to student housing in 2026. 
  • The Courtyard Marriott will continue to operate as a hotel through at least 2030. This will help meet the lodging needs of guests who attend events held on campus and in the city. 
  • This approach will help serve our students by providing housing close to campus, which will foster their engagement with our vibrant campus life.  

WPI has been a hub of transformational education, innovation, and economic development in Worcester for 159 years. WPI students, faculty, and staff play a vital role in supporting local businesses, driving innovation, enriching the city’s culture, and reinforcing Worcester’s position as a thriving, forward-thinking community. We have worked diligently to be thoughtful, caring, and helpful partners with the City, and our commitment to the Worcester community remains steadfast. 

Of note:

  • WPI has invested more than $140 million in the Gateway Park master plan since its inception.
  • WPI’s current PILOT (Payment In Lieu of Taxes) is by far the highest among universities in Worcester, and our annual payments to the City currently exceed $815,000 each year. 
  • Since 2009, we have paid the City $9 million under our PILOT agreement.
  • Over the course of the agreement (through the year 2034), WPI will have paid Worcester a total of approximately $18 million. 
  • Our 2023 Community Impact Report highlights additional contributions such as: 
    • Tens of thousands of hours of community service.
    • $5.6 million in grants and scholarships for Worcester residents.
    • Nearly $14 million in business for Worcester suppliers and vendors. 
    • Support, training, and tutoring in Worcester schools.
    • Partnership on public safety initiatives.

WPI remains strongly committed to our home city, and we will continue to partner with Worcester to make this a hub of education, research, innovation, and entrepreneurship. We are proud that, this academic year, our students are coming from 47 states and nearly 100 countries, carrying the name of our home city and this university around the world. Nearly 450 WPI employees reside in Worcester, and, as of 2023, WPI technologies and resulting local and regional spin-out companies have employed more than 400 Worcester residents and raised approximately $1 billion in investment. 

Since 1865, WPI has been serving our students and the Worcester community. Our partnership with the City has allowed us to accomplish many great things together, and we look forward to many more collaborations as we continue our steadfast commitment to leading edge education, research, and innovation, and to creating a dynamic community on campus and in the city.  

We also want to thank each of you for all you do for our community and for helping to make WPI a valued partner for our city. 

Sincerely,

Michael Horan CPA, EdD    
Executive Vice President & CFO

Philip Clay
Senior Vice President for Student Affairs & Enrollment