totaliren added new product for sell.
9 months ago


Price $5000000 (USD)
Type New

- 365-room, full-service, Holiday Inn Baltimore Inner Harbor, located in a prime location in downtown Baltimore
- Hotel includes a 265-room and a separate 119-room tower - a buyer has the opportunity to reduce the room count with multi- family or student housing on the second tower, refranchise within another brand family
Institutional-quality full service asset available at a significant discount to replacement cost
- Offered unencumbered by franchise, management and debt; opportunity to keep IHG flag or refranchise within the Marriott brand family
- Deep value add opportunity through renovations and committed management
- Prime location within Baltimore’s CBD and Inner Harbor
- Located in one of Baltimore’s Opportunity Zones; new investments, under certain conditions, may be eligible for preferential tax treatment
- Bi-level parking garage included that capitalizes on both hotel demand and demand generated by local events
- Property tours will be held May 19th, 20th, 27th and 28th by appointment only. Please contact the listing broker to schedule.

Detailed Description
JLL’s Hotels & Hospitality Group, as sole and exclusive agent, has been retained to offer for sale the fee simple interest in the 365-room Holiday Inn Baltimore Inner Harbor, located in a prime location in downtown Baltimore. This offering presents an exceptional opportunity to acquire an institutional-quality, full service asset in an irreplaceable location at a significant discount to replacement cost. New ownership has the ability to realize exceptional upside potential in terms of both top- and bottom-line performance through capital investments and long-term committed management. Issues between prior ownership and management coupled with a lack of capital spend and inefficient staffing levels over the last few years resulted in a significant decline in performance and, subsequently, the property went in to foreclosure and was put into receivership in January 2019. The asset is offered unencumbered by franchise, management and debt.

The 365-room Holiday Inn Baltimore Inner Harbor Downtown, situated at 301 West Lombard Street, benefits from an ideal location in the heart of downtown Baltimore. The full service Hotel was built in two phases: the 13-story, 246-room Main Tower opened in 1964 and the 10-story, 119-room West Tower opened in 1966. The Property also features a bi-level parking garage that capitalizes on both hotel demand and demand generated by local events. This upper midscale hotel offers 365 guestrooms and approximately 10,088 square feet (excluding prefunction space) of flexibly-configured meeting space including meeting rooms on the 12th and 13th floors that offer 360-degree views of the city and overlook Camden Yards. Additional amenities include the Eden’s West Restaurant and Sports Bar, Dottie’s Café, business center, fitness center, indoor swimming pool and circa 220 parking spaces within a two-level parking garage. Construction of similar hotels with comparable meeting space are estimated to exceed $250,000 per room.

The Hotel has historically been a very strong performer with top line revenues in the $13 to $15 million range and RevPAR penetration of 110% prior to 2016. However, after the Property was sold in late 2015, it began to suffer due to a dysfunctional partnership and lack of capital spend from ownership. Over the years, management was forced to cut back employees including a majority of the sales staff resulting in a decline in group and corporate bookings. As a result, performance dropped dramatically since 2016, and the Hotel was put into receivership in 2019. At that time, almost all sales efforts and future bookings were non-existent. Significant upside exists to return and surpass the Property’s previous peak performance through a committed long-term management team, focused sales staff and brand related improvements.

Self-parking at the Property is governed by a parking service agreement. LAZ Parking, which retains the parking revenue generated by the garage, pays the Hotel a minimum concession fee of $600,000 per year. In addition to hotel-related demand, the garage generates revenue from weekday corporate demand as well as demand from special events including those at Royal Farms Arena, Camden Yards and M&T Bank Park. New ownership has the opportunity to bring parking in house which could create a significant revenue stream for the Hotel.

The Property benefits from its prime location within Baltimore’s CBD and Inner Harbor. It is surrounded by numerous tourist attractions and corporate demand generators including the Royal Farms Arena, Baltimore Convention Center, Camden Yards, M&T Bank Stadium, University of Maryland Baltimore, National Aquarium, Johns Hopkins, and nearly 17 million square feet of office space within a 0.5 mile radius. The largest office tenants in the area include the VA, T. Rowe Price headquarters, GSA, Maryland Department of Human Services, University of Maryland School of Medicine, state attorney general’s office, Baltimore Gas and Electric, M&T Bank, U.S. Army Corps of Engineers, Miles & Stockbridge, Verizon and Baker Donelson. M&T Bank moved its 167,000-square foot Mid-Atlantic headquarters to the One Light tower just five blocks from the Hotel in September 2018.

The Hotel’s availability of franchise, management, excellent location, strong upside in cash flow and discount to replacement cost create an extremely compelling investment opportunity for the new owner.