Image courtesy of Waterford Hotel Group

The Capital Region Development Authority is supporting developer Randy Salvatore’s plans to convert 147 rooms on the upper floors of the troubled Hartford Hilton hotel into apartments.

The agency is preparing to offer a $5.1-million loan for the residential conversion, including a 20-percent affordable component. The hotel’s owner, Waterford Hotel Group, is simultaneously planning to renovate the remaining 166 hotel rooms on the lower floors.

Like many hotels, the Trumbull Street property has suffered from deep declines in occupancy during the COVID pandemic. No offers were submitted for the property at an auction last fall.

The property was in financial difficulty prior to the pandemic, as the owners in 2019 sought to renegotiate terms of the ground lease with the city of Hartford to support the renovation project.

Salvatore told CRDA board members Friday that the hotel’s continued operation is an important part of the city’s economic future, according to the Hartford Business Journal. His development firm, Stamford-based RMS Cos., is developing 270 apartments in a project known as North Crossing next to the Dunkin’ Donuts Park minor league baseball stadium in the first phase of the DoNo project.

Following a positive vote of a CRDA committee Friday, the loan is subject to approval of the CRDA board and the state Bond Commission.

Conversions to apartments are planned at several troubled hotels in Connecticut, including the former Red Lion Hotel in Hartford and hotels in Farmington and Manchester. According to a May study by the National Association of Realtors, nearly 200 hotels are being converted into other uses nationwide, primarily housing.