Hodges Ward Elliott (“HWE”) is pleased to offer the opportunity to acquire the Residence Inn Baltimore White Marsh (“Property” or “Hotel”), located just off Interstate 95 in Baltimore’s northeast growth corridor, less than 15 miles from Downtown. With a key location within the White Marsh Town Center master-planned development, the Hotel is positioned near major retail hubs like White Marsh Mall and The AVENUE at White Marsh, as well as over 19 million square feet of industrial and office space within a five-mile radius.
Situated in the I-95 North Industrial Submarket, the largest warehouse and distribution area in the Baltimore metro, it benefits from proximity to major distribution centers such as Amazon, FedEx, Breakthru Beverage Group, and SEKO Logistics, driving demand from business and extended-stay travelers. White Marsh is a true 7-night per week market with significant corporate and government presences and transient demand driven by sports complexes and retail outlets. The fee simple offering presents a unique opportunity to own an institutional-quality, select-service hotel in one of the Mid-Atlantic’s most rapidly expanding metropolitan areas.
Property Overview
Investment Highlights
WHITE MARSH – AT THE HEART OF BALTIMORE’S EXPANDING RETAIL AND COMMERCIAL HUB
Strategically located in Nottingham within Baltimore County, White Marsh is a highly educated and affluent suburb, less than 15 miles northeast of downtown Baltimore. Offering easy access to the city’s urban core, White Marsh maintains a suburban atmosphere and has seen significant growth over recent years, driven by its thriving retail and commercial sectors. White Marsh has evolved from a small suburban area into a key regional hub, anchored by major shopping centers like White Marsh Mall and The AVENUE at White Marsh.
Additionally, the Property is located within a five-mile radius of more than 19 million square feet of industrial and office space, home to prominent companies such as Mariner Finance Headquarters, Baltimore International Warehousing & Transportation, Amazon, Breakthru Beverage Group, FedEx, and JPK & Associates. This prime location positions the Hotel at the center of the I-95 North Industrial Submarket, the Baltimore metro area’s largest and most active warehouse and distribution hub.
White Marsh is ideally positioned with easy access to major roadways, including Interstate 95 and the Baltimore Beltway, ensuring excellent connectivity to Baltimore, Washington D.C., and beyond. As the city continues to expand and diversify, its close ties to downtown Baltimore provide easy access to the region’s cultural, entertainment, and employment hubs.
MEANINGFUL RENOVATION UPSIDE
Given the decline in the Residence Inn's market share in recent years, the Property would significantly benefit from a renovation. Once the market's RevPAR leader with a penetration index of 135%, it now ranks 3rd out of 7 hotels, with a trailing-twelve-month RevPAR index hitting an all-time low of 111%. As the top-branded hotel in the area, a thorough renovation will allow the Property to recoup its share and reclaim its position as the market’s dominant hotel.
MINUTES FROM THE AVENUE AT WHITE MARSH & WHITE MARSH MALL
Located less than a mile from the Residence Inn, The AVENUE at White Marsh is a 35-acre, 315,000-square-foot open-air entertainment complex that has become a major regional destination. Anchored by an AMC 16 IMAX & Dolby Theater, the center offers a diverse mix of retail, dining, and entertainment options. At the heart of the development is a large plaza that hosts a variety of community events throughout the year, including the annual Tree Lighting Ceremony in November, a seasonal ice skating rink, and the popular White Marsh Holiday Parade each December.
Adjacent to The AVENUE at White Marsh, White Marsh Mall is a 1.2-million-square-foot regional shopping center, ranking among the largest malls in the Baltimore metropolitan area. With three major anchor stores—Macy’s, JCPenney, and Boscov’s—the mall boasts a diverse mix of 134 specialty shops, offering a variety of retail, dining, and entertainment options. As one of Baltimore’s top tourist destinations, White Marsh Mall continues to attract visitors from across the region.
STRONG POSITIONING/VISIBILITY DIRECTLY OFF I-95
The Hotel is located directly off I-95, the most vital north-south transportation artery on the U.S. east coast. The Property also benefits from strong visibility to I-95, which generates significant walk-in room demand. On average, 65,000 vehicles travel along this corridor daily, with peak travel reaching 300,000 per day. Properties such as the Residence Inn benefit tremendously from being directly off the Interstate and see significant demand from leisure travelers and long-haul truck routes making their way up and down the coast.
NO NEW SUPPLY RISK
With no hotels currently under construction in the Baltimore Suburbs submarket, a new owner has a unique opportunity to capture significant market share for the foreseeable future.
TRUE 7-NIGHT PER WEEK MARKET
The Residence Inn is positioned in a vibrant 7-night per week market with significant corporate and government presences and transient demand driven by sports complexes and retail outlets. Government and contractor demand derives from significant defense and agency presences in the Baltimore-Washington Corridor, such as the 72,500-acre Aberdeen Proving Ground Army Post, one of Maryland’s largest employers. Weekend demand is fueled by leisure travelers, retail customers, and substantial youth sports events, such as those held at the nearby Ripken Experience Aberdeen baseball complex.
VERY ATTRACTIVE ACQUISITION BASIS
Due to escalating land costs and rising construction expenses, the anticipated transaction price places a new owner’s all-in basis significantly below replacement cost allowing an investor to benefit substantially from a combination of location in a growing economy and upside opportunity.
OPTIMAL OFFERING - FEE SIMPLE, NON-UNION, UNENCUMBERED BY MANAGEMENT
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
CATEGORY KILLER BRAND / POWER OF MARRIOTT
The Property benefits from its affiliation with Marriott, the world’s most recognizable and top-performing hospitality brand. Marriott provides centralized marketing, booking, and rewards systems, providing the Hotel with access to 160 million Marriott Bonvoy members. Residence Inn is a top-tier brand and arguably one of the most valuable franchise brands in the extended-stay space in the US. The brand currently has over 850 properties nationwide, along with 50 Properties totaling 5,852 rooms in the US pipeline, demonstrating a high level of growth. In addition, this growth translates to owner confidence in long-term cash-on-cash returns as well as reversion value.
