Demolition crews have begun tearing down the Carlton Inn building in downtown Winnipeg this weekend.

CentreVenture, an arm's-length agency of the City of Winnipeg, bought the Carlton Street building last year and said it would demolish it and replace it with a new hotel complex.

The downtown development agency has been working on transforming the area into a massive sports, hospitality and entertainment district (SHED).

The 11-block district would encompass the MTS Centre, the Winnipeg Convention Centre, the Metropolitan Theatre, the Burton Cummings Theatre and a hotel complex that's under construction on Portage Avenue.

CentreVenture also bought the St. Regis Hotel on Smith Street as part of its downtown revitalization plan.