A Mariott was just built in Downtown Syracuse, and Hotel Syracuse is being run by Mariott with almost 300 rooms that are built to Mariott standards. There is a hotel being built in the inner harbor, another hotel being built in Carrier Circle, and there's likely to be a hotel built inside/alongside Destiny in the VERY near future.
Syracuse tourism is skyrocketing, and because of this the hotel situation in Syracuse is rapidly improving and growing. Remember that Syracuse is not going to be hosting next year's final four. If they ever do host a final four it will be ten years (or more) in the future. There is a night and day difference between Syracuse ten years ago and Syracuse now, and in another decade the difference will be even more significant.
When you project out into the future, the number of hotel rooms should not be a problem, especially when you consider that the new stadium will hold 40+ thousand fans and not the 80+ thousand fans as some of these sites do.
There is no way this proposal happens without state money, and you have to ask yourself why the state would want to pour all that money into a private university project that's not going to create much (if any) revenue that the current Dome is not already creating. Aiming to host a final four might be the answer to this question.
Just one final four scheduled in Syracuse would justify the cost of this project. If Syracuse could, say, host a final four once a decade it would be a major coup for New York state as a whole. There are zero cities the size of Syracuse that hold events as large as a final four. I can't even think of a city Syracuse's size that hosts an event the scale of an Elite 8/Sweet 16 which we did an excellent job with this last year especially. Just being able to have a conversation about this means that big exciting things are happening, and at this point I don't think you can rule anything out.