By Scott Baltic
MCR Development has acquired the 147-key Homewood Suites by Hilton Baltimore-BWI Airport, in Linthicum, Md. The company decline to disclose the purchase price for the asset.
The hotel, located at 1181 Winterson Road, recently underwent a multi-million-dollar renovation. Each suite features a fully equipped kitchen with two-burner stove, microwave, full-size refrigerator and dishwasher, along with complimentary grocery shopping.
- 24-hour convenience store
- indoor pool
- 24-hour fitness center
- 24-hour business center
- On-site laundry facilities
- Meeting and event space
- Complimentary breakfast
- Free Wi-Fi
- complimentary 24-hour airport shuttle
The hotel is a six-minute drive from Baltimore/Washington International Thurgood Marshall Airport and a 15-minute drive to Baltimore’s Inner Harbor, which offers entertainment options such as ice skating, tours of historic ships, the Horseshoe Casino and the National Aquarium.
A healthy picture
The metro Baltimore hospitality market had nearly 1,000 rooms in the pipeline as of June, according to a second-half 2018 report from Marcus & Millichap. Though this was far fewer than the 3,000-plus underway in metro Washington, D.C., it far outstripped any other metro areas in the Central Atlantic region.
Transaction velocity is up in Maryland, where hotel properties “traded with first-year returns in the mid-8 percent band, nearly 50 basis points above the regional average,” the report stated.
Nationally, the hospitality industry was expected to enjoy a record surge of holiday-season traffic in the fourth quarter, on top of occupancy and revenue gains in the third quarter, according to a fourth-quarter M&M report.
“Hotel cap rates have remained steady for the last couple of months while those of other commercial properties have begun to rise,” David G. Shillington, president of Marcus & Millichap Capital Corp., wrote in the report.
“Moreover,” he continued, “the gap between Treasury yields and hotel cap rates is relatively wider when compared with other property types. This extra room allows hotel values to better absorb the interest rate pressure.”
Though cap rates might adjust upward as interest rates continue to rise, Shillington noted that this has not yet happened in the hotel sector.
MCR recently partnered with Building and Land Technology in securing $647.5 million in financing across a 53-property national hotel portfolio.
Image courtesy of MCR