HREC Investment Advisors (HREC IA) is pleased to offer for sale the fee-simple interest in the 250-guestroom Radisson Harrisburg located in Camp Hill, Pennsylvania. Located directly off Highway 15 in Camp Hill, the property sits across the Susquehanna River from Downtown Harrisburg, Pennsylvania’s state capital. The property benefits from a diverse base of demand generators, including the Pennsylvania State Capitol Complex, The State Museum of Pennsylvania, Whittaker Science Center, the Shops at Strawberry Square, and Downtown Harrisburg businesses, all located within five minutes of the hotel. The Naval Support Activity Mechanicsburg, an 806-acre naval supply depot and the headquarters of the Naval Supply Systems Command, is located approximately five miles from the property and the Pennsylvania Farm Show Complex & Expo Center, a major source of business and group demand in the greater market. The hotel is also conveniently located directly across the street from the Penn State Health Holy Spirit Medical Center. Additional leisure demand stems from nearby City Island Park, home of the Harrisburg Senators baseball team, and Hershey Park theme park, home of world-famous Hershey bars made at Hershey’s Chocolate World. The Radisson is a well-located full-service hotel within the Harrisburg market. It is an ideal buy for an investor looking for a full-service hotel containing 30,000 square feet (SF) of event space, including a 15,000-SF ballroom that can accommodate 1,400 people. The hotel had strong pre-COVID revenues, and we believe there are additional revenue and cash flow upside following the completion of a renovation and change in operational strategy. A new owner will have the opportunity to improve the property’s position and capitalize on the hotel’s well-established presence in the market. Over the last three years, the hotel under-penetrated the market in RevPAR while over-penetrating in occupancy. Following the completion of a Property-Improvement-Plan (PIP), the property will be better positioned for rate growth and an improvement in RevPAR penetration. The Radisson recorded strong top-line revenues before the COVID-19 pandemic, including over $8 million in revenue for YE 2019. The property is being offered unencumbered by management, allowing a new owner to implement new cost-saving strategies. More efficient operational strategies will increase NOI flow-through, capitalizing on concurrent post-renovation and post-pandemic revenue growth. Aside from being operated as a hotel, the property could also potentially be converted to an alternative use or redeveloped, given it sits on almost 16 acres of land.
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