BET founder to build Norfolk hotel

RLJ Development, the company founded by BET founder Robert Johnson and Norfolk, Va. Officials announced plans Wednesday to build a luxury hotel and condominium project next to a new conference center and parking garage in downtown Norfolk.

The city and private developers will spend more than $100 million on the project, with the city investing $94 million and Johnson and other minor investors putting up the rest of the funding.

The hotel and condominium project will have 240 rooms but Norfolk officials would like to increase that number closer to 300 rooms.

The city has been trying for the last five years to attract a black developer for the downtown project. The agreement between the city and developers still needs approval from the City Council. A final deal isn't expected for six months and the hotel and conference center likely will not open until late 2008.

Johnson also announced earlier this week that he has signed a letter of intent with Deutsche Asset Management (DeAM), the asset management division of Deutsche Bank AG, to form and operate a hedge fund under his holding company RLJ.

Johnson's RLJ Birmingham UAB Hotel LLC also recently purchase the Marriott Courtyard at 1820 Fifth Ave., South. RLJ Birmingham UAB Hotel is a division of RLJ Urban Lodging Fund, a subsidiary of RLJ Development LLC.