Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 257-room DoubleTree by Hilton Lansing (“Hotel” or “Property”), situated at 111 N Grand Ave Lansing, MI 48933.
Built in 1985, the 11-story high-rise Hotel features 257 well-appointed guestrooms and recently underwent a comprehensive $12 million renovation in 2023/2024 as part of its conversion from a Radisson to a DoubleTree by Hilton. The renovation encompassed all guestrooms and corridors, the restaurant and bar, meeting rooms and pre-function areas, the lobby, and the Made Market. These facilities have made the DoubleTree a preferred choice for government, state and regional associations. This asset presents a highly attractive investment opportunity with minimal required property improvement obligations from Hilton.
Ideally situated at the intersection of Grand and Michigan Avenues, the DoubleTree enjoys a prime location just one block from the Michigan State Capitol, making it the closest Hotel. It features a direct connection to the Lansing Center, Lansing’s 125,000 square foot city-owned convention facility, via a second-floor heated skywalk that also links to the adjacent North Grand Parking Ramp. This strategic positioning allows the property to capture a strong share of both government and group-related demand.
The Hotel has a strong F&B outlet, the Capitol City Grille and the Capitol City Lounge. As per the most recent P&Ls, the restaurant is doing approximately $1.5mm in top-line revenue and has historically done over $2.5mm in revenue. This, coupled with the Hotel having over 10,000 SF of meeting space and the capacity for receptions up to 700 guests, makes it a very unique asset with multiple sources of revenue.
Michigan State University, located just four miles away, is a significant driver of overnight stays with over 50,000 students and a wide array of athletic, academic, and professional events throughout the year. The DoubleTree also benefits from its proximity to several of Lansing’s major demand generators, including Accident Fund Insurance, Sparrow Hospital & Health System, General Motors, Peckham, Inc., and Auto-Owners Insurance. The Hotel is at the heart of Lansing’s ongoing downtown revitalization, with nearby attractions including Jackson Field, home of the Lansing Lugnuts; a growing number of newly opened residential communities; diverse dining options; and the recently opened Capital City Market, a key component of the Block 600 development.
Investment Highlights
Recent Renovation and Upbranding
Following a recent $12 million renovation and rebranding to DoubleTree by Hilton, the Hotel exhibits minimal future capital needs and has the ability to capture greater RevPar penetration among its competitive set.
Prime Government & Institutional Demand
Located in Michigan’s capital, Lansing is a major hub for state government activity, driving consistent weekday demand with numerous state departments and legislative offices all concentrated downtown, proximate to the Property.
Offered Unencumbered of Management
This will offer the Property significant upside potential with a more hands-on operator that is focused on cost containment.
Area Revitalization
Lansing’s “Choose Lansing” initiative continues to showcase the city’s vibrant attractions and cultural events, such as the Capital City Film Festival and Old Town BluesFest. These efforts contributed to a record-breaking year in 2024, with hotel room nights sold surpassing pre-pandemic levels, reaching over 1.1 million. Tourism generated $732 million in economic impact, drawing 6.7 million visitors to the city.
Additionally, General Motors is investing $900 million to retool its auto plant for electric vehicle production, and a new $2.6 billion battery facility is set to open soon. These developments position Lansing as a growing hub in Michigan’s electric vehicle and tech-driven economy.
Convention & Event Business via Lansing Center
The Lansing Center hosts over 80 events annually, including conventions, trade shows, conferences, and community gatherings. With more than 71,000 square feet of exhibit space, the center can accommodate up to 380 exhibit booths and offers flexible meeting rooms to support a wide range of events. Its central location in downtown Lansing, directly connected to the DoubleTree by Hilton via a skywalk, enhances its accessibility and appeal.
Upward Performance
The Hotel went from 75% RevPAR penetration to 95% over the last year.
Proximity to Major Employers
The greater Lansing area employs over 200,000 individuals, with major employers like Michigan State University, Sparrow Health System, and General Motors playing key roles in shaping the region's workforce.
Offered Well Below Replacement Cost
The opportunity to acquire this asset well below replacement cost allows an investor to benefit substantially from a combination of location in a growing economy and upside opportunity. The national average cost of building a hotel has increased significantly in the past few years. Given the size and condition of this Hotel, as well as the increased cost of labor and supplies in today’s market, we can reasonably assume that the construction of this Property would be significantly more than the target selling price of this asset.
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