Hotelier Ashford Inc. is teaming up with Craig International and Horizon Capital to build a $325 million luxury JW Marriott resort hotel and for-sale condominiums in the Dallas area after getting approved for millions of dollars in government incentives.
The Ashford-led development partnership is planning to build the JW Marriott Resort McKinney Craig Ranch at an 8-acre tract at 8001 Collin McKinney Parkway in McKinney, Texas, a Dallas-area suburb about 31 miles north of downtown Dallas.
McKinney approved an application Thursday by the developers that sought $25 million in grants funded upon the project obtaining a certificate of occupancy and $10.25 million in loans funded upon the start of construction.
Another $2 million is expected to come from the McKinney Economic Development Corp., with an estimated $18 million over a 12-year period from city tax rebates, according to a presentation from the development group. The project is also expected to receive an estimated $31 million of state tax rebates over a 10-year period based on projected revenue, according to the presentation.
The development group said there will be an economic benefit to having "the only luxury hotel" in the immediate area and could further enhance the TPC Craig Ranch, where the annual Byron Nelson golf tournament is played each year, that is adjacent to the hotel's development site. The approval for the funds comes days after the city began construction on the new commercial terminal at McKinney National Airport, in a move making way for commercial flights in 2026.
The development group plans to secure conditional letters of financing for the project by year's end, with construction beginning before Dec. 31, 2026. Completion is scheduled for April 30, 2029, the presentation said.
The luxury resort-style project is expected to include 290 hotel rooms and 48 for-sale condominiums, with more than 51,000 square feet of ballrooms and other meeting spaces. The hotel is expected to bring a resort-style pool and lazy river, multiple dining options and full-service restaurants, pickleball courts, a business center, fitness center and lounge with poolside service.
McKinney Mayor George Fuller said in a statement that "a luxury resort like JW Marriott is not just welcome, it's needed" to support the growing city's needs.
The development partnership's special purpose entity behind the JW Marriott Resort McKinney Craig Ranch is Craig Ranch Luxury Hotel SPE LP. Ashford has a 75% interest in the entity, with Craig International and Horizon Capital sharing a 25% stake, according to city documents.
Horizon Capital was co-founded by Dave Johnson, a former Wyndham executive, who served as CEO and chairman after co-founding Aimbridge Hospitality. Craig International is a longtime North Texas developer led by David Craig, who built Craig Ranch in McKinney.
Ashford is a Dallas-based real estate investment trust that as of May owned 72 hotels in its portfolio. The REIT has sold off some of its hotels in recent years after financially struggling since the onset of the pandemic. In its last earnings call, executives said government cuts were also taking a toll on its business.