Recently Renovated, Institutional-Grade Property

• Closed since 2020, ownership has invested nearly $5 million in the last twelve months to bring the property back to working order, addressing mostly major systems and mechanical upgrades, thus reducing the immediate capital investment needs for a buyer.

• Current ownership plans to reopen the hotel as an independent, non-branded property in 2025, having already passed key inspections, including elevator, mechanical, and sprinkler.

• An investor will be able to focus on interior renovation, inclusive of the guestrooms and all public spaces, while continuing to operate (if desired).

• The hotel asset is available for purchase below well replacement cost, offering a unique opportunity to introduce a new product. New ownership will have a blank slate to implement its own revenue-management strategy and maximize profitability.

Competitive Advantages Offered

• The property offers 17 surface parking spaces, a rare amenity not available at all nearby competitors, providing both a competitive edge and an additional revenue stream.

• The roughly 1,800 square feet of restaurant space provides potential for third-party leasing, generating additional income while enhancing the guest experience with an attractive onsite amenity.

• The 1,750 square feet of meeting/event space provides a manageable yet highly functional area, allowing the hotel to attract small meetings and group business, further diversifying revenue streams.

• The Industrial and Commercial Abatement Program (ICAP) offers substantial savings, potentially reducing property taxes by hundreds of thousands or even millions of dollars over the holding period, boosting long-term profitability.

Non-Unionized Hotel Unencumbered by Brand or Management Agreement

• As a non-unionized hotel, greater operational flexibility and potential cost savings are notable opportunities.

• The hotel is unencumbered by an existing brand or management agreement, presenting a buyer with the flexibility to select its preferred brand and customize the property to align with its vision.

Strong Brand Interest from Hilton

• Hilton brand representatives have expressed strong interest in an affiliation with the possibilities of either the Hampton by Hilton or Tru by Hilton brand, highlighting the property’s strategic appeal and alignment with Hilton’s growth objectives in the Long Island City submarket. We expect a developer to be able to negotiate favorable franchise license terms (including potential brand incentives) as an accretive part of the overall project.

• These premium brands are known for commanding market-leading occupancy, average daily rate (ADR), and notoriety, which would position the hotel for strong performance in a competitive market.

• Hampton by Hilton is often regarded as one of the top five franchises, named the #1 lodging franchise by Entrepreneur magazine for 15 years straight.

• Tru by Hilton is one of the fastest-growing brands in the industry, exceeding all expectations out of the gate. With over 250 hotels currently open, and another 175 ongoing developments, success is nothing new for the four-time J.D. Power award-winning midscale brand.

Ability to Retain Holiday Inn Flag with IHG

• The property was originally constructed and successfully operated as a Holiday Inn for twelve years.

• A buyer has the option to retain the Holiday Inn flag, streamlining the branding process while leveraging the InterContinental Hotels Group (IHG) global distribution and loyalty network to drive occupancy and revenue.

• Reopening under the Holiday Inn brand would likely reduce conversion costs, as the hotel already meets certain IHG brand standards, minimizing required renovations and expediting the reopening process.

• Holiday Inn is one of the most recognized and trusted hotel brands worldwide, consistently ranking as the most trusted travel and hospitality brand in the nation. In 2023, Holiday Inn hotels generated approximately $6 billion in gross revenue globally, reflecting a 16.9% increase from the previous year.

High-Performing Submarket with Strong Revenue Growth

• According to the STR report, the hotel is part of the high-performing submarket of Long Island City. With the submarket’s occupancy having averaged above 80.0% since 2021, and ADR having reached $232 in 2024, RevPAR levels often surpass $200 in peak months. This sustained performance underscores the market’s strong demand fundamentals and ability to support premium room rates, leading to robust profitability for hotel owners.

• The submarket has experienced steady year-over-year (YoY) growth, with RevPAR having increased by an average of 16.6% annually since 2021, supported by consistent ADR gains and growth averaging 7.7% over the same period. This upward trajectory reflects the area’s strong demand fundamentals and resilience, positioning the hotel to benefit for continued revenue expansion.

Excellent Location Among Strong Demand Generators

• Situated minutes from Midtown Manhattan, the property is near one of the world’s most robust corporate and tourism markets, driving consistent demand. Its location offers a more cost-effective lodging option for tourists seeking proximity to the city without paying premium Manhattan hotel rates, making it an attractive choice for budget-conscious travelers.

• Positioned in the eastern portion of Dutch Kills neighborhood, the property is in a comparatively less industrial setting than the west side, avoiding the influence of the Ravenswood Generating Station and large public-housing complexes. This location enhances its appeal for upscale branding and guest experience. Additionally, the area boasts a greater selection of walkable dining options, further elevating its attractiveness to travelers.

• Minutes from LaGuardia Airport (LGA), the hotel is well positioned to capture demand related to travelers seeking convenient accommodations near the airport. LGA was trending toward record-high passenger traffic in 2024 and is set for continued growth with its ongoing $8-billion expansion project, further strengthening the area's demand for hotel accommodations.

• Excellent connectivity to nearby subway stations (Lines E, M, N, R, and W) provides easy access across Queens and to/from Manhattan.