Winnipeg's hotel accommodation tax will be used to cover the convention centre expansion loan.
City council approved the plan at its Wednesday meeting.
The hotel association voiced opposition to the plan, saying the tax is supposed to be used to promote tourism.
It's upset hotel customers are paying for the expansion that's in direct competition with the industry.
The convention centre is facing a cash crunch for a $33-million loan with the city after a planned hotel development failed.
Property tax money and added business from the proposed hotel was supposed to cover the loan.
On Tuesday, True North announced it has found a hotel developer for True North Square, the mega development across from the convention centre.
