Jacksonville, Florida, January 22, 2026

The Downtown Investment Authority in Jacksonville has approved significant incentives for Baptist Health’s ambitious $110 million hotel project. The proposed 15-story Marriott hotel, featuring two distinct hotels, a rooftop restaurant, and a conference space, will cater to families of patients and the general public. With a generous 75% tax refund grant and projected returns of 10% for Baptist Health, this initiative is poised to enhance Downtown Jacksonville’s economic landscape.

Jacksonville Approves Incentives for Baptist Health’s $110 Million Hotel Project

Jacksonville, Florida – The Downtown Investment Authority (DIA) has approved a $13 million Recapture Enhanced Value (REV) Grant and endorsed an additional $8 million completion grant for Baptist Health’s proposed 15-story Marriott hotel on the Downtown Southbank. This $109 million project is set to transform a 1.82-acre parking lot at 1051 Palm Avenue into a 226-room hotel featuring a 134-room Marriott Tribute Portfolio boutique hotel and a 92-room Element by Westin extended-stay hotel. The development will also include 5,200 square feet of conference space, a 5,000-square-foot rooftop restaurant, a 1,000-square-foot ground-floor café, and a 113-space parking garage. The REV Grant offers a 75% tax refund over 20 years, while the completion grant is structured in two $4 million payments, anticipated in 2029 and 2030. The project is expected to generate a 10% return on investment for Baptist Health.

Project Details

• Location: 1051 Palm Avenue, Downtown Southbank, Jacksonville, Florida
• Hotel Components: 226 rooms comprising a 134-room Marriott Tribute Portfolio boutique hotel and a 92-room Element by Westin extended-stay hotel
• Additional Features: 5,200 square feet of conference space, a 5,000-square-foot rooftop restaurant, a 1,000-square-foot ground-floor café, and a 113-space parking garage
• Incentives Approved: $13 million REV Grant (75% tax refund over 20 years), $8 million completion grant (two $4 million payments in 2029 and 2030)
• Projected Return on Investment: 10% for Baptist Health

Background

The DIA’s approval follows a series of discussions and revisions to the proposed incentives. Initially, Baptist Health requested a $27 million incentives package, including a $9 million REV Grant, a $3 million loan, and a $15 million completion grant. After negotiations, the request was adjusted to $21 million, comprising the current REV Grant and completion grant structure. The project aims to provide lodging options for families of patients receiving care on the campus while also serving the general public. The rooftop restaurant and ground-floor café will be open to all visitors. The development is part of a broader initiative to revitalize Downtown Jacksonville and stimulate economic growth in the area.

Community Impact and Economic Growth

The new hotel is anticipated to serve not only families of patients but also contribute to the overall influx of visitors to Downtown Jacksonville. The inclusion of a rooftop restaurant and a café will bolster local dining options, adding to the attractiveness of the area. This development reflects a commitment to revitalizing urban spaces and enhancing the quality of life for both residents and visitors. Economic growth in Duval County often hinges on such targeted investments that prioritize private sector involvement while creating spaces that are beneficial to the community.

Benefits of Limited Regulation

Incentives like the REV Grant can stimulate economic growth by encouraging private investments in Jacksonville. By offering a tax refund structure, the local government demonstrates a proactive approach to attracting businesses and enhancing the area’s development. The project underscores the positive impact of limited red tape, which can help local entrepreneurs flourish and create jobs, further contributing to a vibrant economy in Jacksonville, Florida.

Key Features of the Project

Conclusion

The approval of the incentives for Baptist Health’s new hotel project is a promising step forward for Jacksonville’s economic landscape. This investment not only seeks to accommodate families of patients but also enhances the general appeal of Downtown Jacksonville through new dining and lodging options. As local businesses grow and thrive, it is crucial for the community to remain engaged. Supporting such initiatives will help ensure a prosperous future for Jacksonville’s economy and its residents.