Former Holiday Inn Long Island City

The former Holiday Inn Long Island City – Manhattan View has recently reopened as an independent boutique hotel after a significant investment and renovation. This property presents a unique opportunity for investors to acquire and rebrand a non-unionized hotel in a high-performing New York submarket.

Investment and Repositioning Opportunity

HVS Brokerage & Advisory is offering the leasehold interest in the property, which includes 136 rooms and has been unoccupied since 2020. The hotel has undergone a $5 million renovation focusing on major systems and mechanical upgrades, which minimizes further immediate capital needs for potential buyers. The property is now operating independently and offers the flexibility for a new owner to introduce a preferred brand and management style.

The asking price for the property has been set at $21,500,000, equating to approximately $158,000 per key. This pricing represents a reduction from previous valuations, indicating that the current owners are motivated to sell.

Strategic Location and Market Performance

Located in the Long Island City area, the hotel benefits from its proximity to Midtown Manhattan, making it an attractive option for tourists and business travelers seeking more affordable accommodation options near the city. The local market has shown strong performance metrics, with occupancy rates averaging above 80% since 2021 and Average Daily Rates (ADR) reaching $232 in 2024.

The property is also strategically positioned near LaGuardia Airport, which is undergoing an $ 8 billion expansion, potentially increasing demand for nearby accommodations.

Competitive Advantages and Potential

The hotel offers several competitive advantages, including 17 surface parking spaces and approximately 1,800 square feet of restaurant space that could be leased to third parties. Additionally, the property includes 1,750 square feet of event space, suitable for small meetings and events, which could help diversify revenue streams.

The Industrial and Commercial Abatement Program (ICAP) could offer significant property tax savings, enhancing long-term profitability for the new owners.

Branding and Management Flexibility

The property is currently unencumbered by any brand or management agreements, providing significant flexibility for repositioning. There is a strong interest from Hilton to affiliate the property with its Tru by Hilton brand, which could align with the hotel’s strategic goals and market positioning. Alternatively, the new owner could choose to retain the Holiday Inn brand, which would likely streamline the rebranding process and leverage the existing recognition and loyalty associated with the InterContinental Hotels Group.

This former Holiday Inn presents a compelling investment opportunity in a robust market. With its strategic location, recent upgrades, and flexibility in branding and management, the property is well-positioned to capitalize on the growing demand in Long Island City and the broader New York City area.

Inquire at HVS.