After receiving a commitment from the state and Montgomery County for up to $62 million in subsidies, Marriott International, the largest hotel company in the world, announced yesterday that it plans to keep its headquarters in the county when its current lease term ends in 2022. Marriott plans to move its 3,500 employees to a new complex near the Bethesda Metro station. County Executive Leggett said that he expects Marriott to produce $1.8 billion in economic activity over 20 years, reports The Washington Post.
Marriott’s incentive package includes:
- a $20 million grant from Maryland’s Sunny Day Fund, provided Marriott maintain at least 3,500 employees and invest $600 million in the new headquarters;
- a $2 million grant from the Maryland Economic Development Fund;
- a $22 million grant from Montgomery County; and
- $18 million in tax benefits, two thirds of which come from the county.
County incentives are still subject to County Council approval.
An incentive package proposed by the Hogan Administration to keep Northrup Grumman in Maryland, including a $20 million forgivable loan from the Sunny Day Fund and $37.5 million in aerospace tax credits, is comparable in size – but the Maryland General Assembly has stalled voting on granting that loan after Hogan refused to release $80 million in funding for other projects.
In March 1999, Marriott received up to $4.3 million in grants and tax breaks from the state and county – the largest incentive package ever offered to a company considering moving at the time, reports the Baltimore Business Journal.