A 12-story office tower that once held the Archdiocese of New Orleans and, decades earlier, a branch of the old First National Bank of Commerce has reopened as a $40 million hotel with 179 bedrooms spread across 39 multi-bedroom suites. VCAY New Orleans now occupies 1000 Howard Ave. in the city's downtown, the culmination of a project that stalled for years before construction finally got underway.
Sam Mohd, managing partner of VCAY, told Biz New Orleans that the 1962 building required a full gut remodel to become a hotel. VCAY, in business since 2019, has built its model around an Airbnb-style experience layered onto traditional hotel service, and Mohd described the concept as offering four to six hotel rooms along with a shared living room and kitchen in each suite, according to the same report.
A Deal Delayed by Rising Rates
Mohd purchased the building from the Archdiocese in 2022, after the Archdiocese put it up for sale following its 2020 bankruptcy filing, but he postponed construction as interest rates and construction costs climbed, according to ConstructConnect. The property and its attached parking garage were purchased for a reported $8.3 million. By mid-2023, Mohd indicated he and partner Rohan Dawra were reevaluating their plans, and they eventually secured financing from Johnson Controls Capital, the outlet reported.
Early plans called for roughly $19 million in renovations over about 18 months, per ConstructConnect's reporting, though developers initially said they expected to spend approximately $22 million before construction ultimately began in November 2024 and the finished project reached nearly $40 million. The redevelopment is credited with creating hundreds of jobs during construction, and VCAY now maintains roughly 15 ongoing positions in housekeeping, maintenance, guest services, security, valet parking and management.
Preserving a Midcentury Landmark
The building was designed by Mathes, Bergman & Associates and completed in 1962 for an insurance company, later housing a First National Bank of Commerce branch, as nola.com has reported. Architect Philip Goldberg, studio lead at AQ Studios and the project's architect, said preservation efforts centered on the tower's original 1962 design as the First National Life Insurance building, protecting features that define its midcentury character.
Goldberg said the conversion required reconfiguring former office spaces into guest rooms with private bathrooms, plumbing and mechanical systems, while the design team concentrated structural changes in areas without historic significance. Office partitions that had been altered and relocated over the decades were removed, while the building's principal circulation areas — including its porte cochere, glass entry vestibule, central lobby and marble-clad elevators — remained largely intact and were carefully renovated. The original exterior window wall system was restored by repairing framing, replacing glass where necessary and resealing the assembly, leaving the exterior much as it appeared at completion and giving guests natural light and panoramic views of downtown.
Financing Through Historic Tax Credits
Goldberg said federal and state historic tax credits were essential to making the project financially viable while still preserving its architectural heritage. Louisiana law allows an income-tax credit for eligible rehabilitation costs on historic structures located in downtown development districts, cultural districts, or properties contributing to the National Register of Historic Places, according to the Louisiana Legislature. Industry analysts have separately noted that such credits often become the critical piece that closes financing gaps in adaptive-reuse projects, according to AQ Team.
What Guests Will Find
Each VCAY suite contains four to six bedrooms with private bathrooms, plus shared living rooms and kitchens, and guests can book individual bedrooms or entire suites depending on their needs. The accommodations are aimed at groups traveling for destination weddings, family gatherings and business trips, as well as individual travelers, and VCAY markets the rooms through hospitality booking platforms that blend vacation-rental features with traditional hotel service.
The redevelopment added an in-ground swimming pool and sun deck, a lounge with a golf simulator, a fitness room, on-site valet parking and a dog park. Mohd said customer reaction has been great, reporting a positive guest response since the hotel's August opening.
New Orleans' Growing Hotel Scene
VCAY's debut lands amid a busy stretch for New Orleans hospitality. The Warbler Hotel, a six-story boutique property from local developer Verdad, recently opened on St. Charles Avenue in the Garden District with a rooftop pool and lounge overlooking the avenue, according to Biz New Orleans. That rooftop space can host up to 125 guests for private events, weddings and gatherings. A Fairmont New Orleans is also planned to debut in the future, and nine New Orleans hotels received Michelin Keys in the 2026 Michelin Guide.
