Tuesday, June 9, 2020

Buccini/Pollin Group Buys $80M deal to buy Baltimore hotel

By Amanda Yeager  – Reporter, Baltimore Business Journal

A local real estate firm has put out a call for investors to join in on a distressed acquisition of the Renaissance Baltimore Harborplace hotel.

The Buccini/Pollin Group is preparing to close on a sale of the 622-room hotel at the end of June. The expected acquisition price is $80 million, which breaks down to nearly $129,000 per room, according to a listing on the investment platform CrowdStreet.

The firm, which has offices in Conshohocken and Wilmington, Delaware, is soliciting investments of up to $20 million in Class A membership interests, per the listing, which says offers are due by June 19. The minimum investment is $40,000.

The hotel, located at 202 E. Pratt St. in the heart of downtown Baltimore, last sold for $157 million in 2005. Current owner Sunstone Hotel Investors has spent nearly $40 million on the property over the past decade, the listing says, including a $24.1 million overhaul of the hotel's guest rooms, bathrooms and suites completed last year.

After the acquisition, the Renaissance Harborplace will become a franchise under the Renaissance brand and will be managed by the PM Hotel Group. The Buccini/Pollin Group, which will co-invest $7.1 million into the purchase, plans to sell the property after five years for $144.6 million.

The Renaissance Harborplace is among the Baltimore hotels that are accepting guests at a time when travel has suffered a massive blow due to the novel coronavirus outbreak. The occupancy rate for hotels in the city's central business district was 19.9% for the week of May 24-30, according to hotel data company STR.

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