Berkadia Hotels & Hospitality has been exclusively retained to offer for sale the fee simple interest in the 210-key Hilton Garden Inn Minneapolis Downtown (the “Hotel,” “Asset,” “Property,” or “Hilton Garden Inn”). Purpose-built in 2009 with premium concrete and steel construction, the ten-story Hilton Garden Inn is the newest hotel in the competitive set and 28 years newer than the competitive set’s baseline (1981). The Hotel has completed approximately $2.9 million ($14k/key) of capital improvements since 2017, including a $1.2 million ($5.5k/key) lobby renovation in 2020, limiting the required going-in capital for a new owner. The Hilton-affiliated hotel is being offered fee simple, non-union, unencumbered of management, with a new 15-year FLA, and at an outstanding basis relative to replacement cost.

The Hilton Garden Inn represents a rare opportunity for a new owner to acquire a premium-branded, limited-service hotel with strong in-place revenue generation, despite considerable top-line upside (see bottom right of page 5). Additionally, the cash-flowing Hotel is being offered with complete operational flexibility, allowing a new owner to implement an operator of their choosing and align the Hotel’s bottom-line margins with typical benchmarks achieved by premium-branded limited-service hotels in this region of the country with similar RevPAR. This will result in attractive exit capitalization opportunities, especially when considering Minneapolis’ continued economic, corporate, and convention recovery.

Strategically located directly off I-35W (100,000 vehicles per day), the Asset boasts a highly accessible downtown location ($14.7 billion in annual visitor spending) and is just steps away from the Minneapolis Convention Center (700k average annual event attendees from 2023 to 2025), which just completed a $25 million modernization. The Hotel’s highly coveted urban location offers seamless access to the city’s premier attractions and demand generators, such as U.S. Bank Stadium (1.1 million annual visitors), Hennepin County Medical Center (484 beds), University of Minnesota Twin Cities ($11.5 billion impact), Target Center, Target Field, Nicollet Mall, and much more. The Asset is also proximate to the Central Business District (CBD), which contains approximately 44 million square feet of office and commercial space within a one-mile radius and is home to the headquarters of major multinational corporations such as Target, Ameriprise Financial, RBC Wealth Management, U.S. Bancorp, and Xcel Energy. When paired with a renowned global loyalty program (Hilton Honors – 250+ million members), no branded hotels under construction or in planning within a five-mile radius, a multi-billion-dollar development pipeline, and return-to-office mandates across several local companies, the Hilton Garden Inn offers a compelling investment opportunity in the current economic landscape.