Hodges Ward Elliott is pleased to offer the opportunity to acquire the 120-room Hampton Inn Traverse City (“Property” or “Hotel”). The Hotel is situated in Traverse City’s growth corridor, between the Old Mission and Leelanau peninsulas, which attracts three million visitors each year due to its natural beauty and tourist attractions. The Property underwent an extensive renovation in 2020 and is being offered fee-simple and unencumbered by management. This offering represents the opportunity to own an institutional-quality, select-service hotel in one of the Midwest’s most desirable places to visit.
Property Overview
| Property | Hampton Inn Traverse City |
| Address | 1000 U.S. 31 North Traverse City, Michigan, 49638 |
| Guest Rooms | 120 | Year Opened | 1987 |
| Year Renovated | 2020 |
| Site Area | +/- 1.73 Acres |
| Amenities | Complimentary Hot Breakfast, Fitness Center, Indoor Pool |
| Parking | Complimentary On-Site Parking |
| Interest | Fee Simple |
| Management | Unencumbered |
Investment Highlights
Traverse City ‘Tourism Magnet’
Traverse City, situated on the shore of Lake Michigan, is a highly sought-after destination in the Midwest. It is renowned for its vibrant winery and brewery industry, as well as its National Cherry Festival, which is celebrated annually to honor the city’s cherry harvest. This festival attracts more than 500,000 visitors every year. Traverse City draws over three million visitors a year and has become a significant economic and cultural center in northern Michigan, generating over $1.23 billion in economic activity each year.
Traverse City is also home to the Munson Medical Hospital network, which provides extensive health services and resources to the northern Michigan area that lacks institutions with appropriate specialized personnel and equipment. Additionally, Greater Traverse City is one of the primary wine regions in Michigan, producing three million gallons of wine annually, and is estimated to be a $300 million industry.
Over 3 million
annual visitors
Over $1.23 Billion
in economic activity
$300 Million Wine Industry Produces three million gallons of wine annually
National Cherry Festival
The National Cherry Festival, which began in 1925, draws more than 500,000 visitors every year to Traverse City for a week-long celebration in early July. The festival celebrates the blossoming of cherry trees and offers a variety of attractions such as farmer’s markets, amusement parks, concerts, and fighter jet performances. The Grand Traverse region produces an impressive 360 million pounds of cherries each year.
Recently Renovated, Institutionally Maintained Asset
The Hampton Inn is an extremely high-quality, three-story asset that was delivered in 1987 and extensively renovated in 2020, transforming the asset and bringing it to current Hilton standards, featuring spacious guest rooms, an indoor pool, fitness center, and business center.
Powerhouse of Munson Medical Center
Munson Medical Center is a regional hospital situated just five miles away from the Hampton Inn. It has a capacity of 442 beds and employs over 3,700 staff members. The hospital serves as the primary healthcare provider for several counties, including Antrim, Benzie, Grand Traverse, Kalkaska, and Leelanau, which together have a total population of approximately 200,000 people. Munson Medical Center is one of only two Level II Trauma Centers located north of Grand Rapids and is the only facility in northern Michigan that has a Neonatal Intensive Care Unit. Additionally, it is a teaching hospital affiliated with both Michigan State University College of Human Medicine and College of Osteopathic Medicine.
Strong Submarket Trends
The Michigan Northwest Area hospitality submarket represents around 7,220 hotel rooms in total. Year End RevPAR was up sharply as of 2023, representing an outstanding 8.4% jump over 2022 and a 30.4% increase over 2019.
Optimal Offering - Fee Simple, Non-Union, Unencumbered by Management
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
Discount to Replacement Cost
Rising prices for labor, materials and financing continue to put pressure on construction costs. The anticipated transaction price for the Property will represent a discount to current replacement cost.
Industry Leading Distribution Platform
The Hampton Inn brand is backed by Hilton Worldwide, one of the strongest brands in the lodging industry, providing a highly-rated reservations system and access to nearly 140 million Hilton Honors members. Hilton is known to have a tremendously loyal following and appeals to a variety of customer segments that provide strong room night demand every day of the week.
