Investment Overview

Marcus & Millichap is pleased to exclusively offer for sale 720 West 5th Avenue, a 200-key full-service hotel located in the heart of Downtown Anchorage, Alaska. The well-appointed property features a fitness center, business center, restaurant space, and approximately 5,500 square feet of meeting space. Previously known as the Westmark Hotel, the property was operated by Holland America under a ground lease that expired in October 2024. The hotel is currently being operated under a short-term lease by hotel staff and the former operations manager that expires in September 2025. This offering includes the fee simple interest in the land and building. The hotel will require a full property improvement plan (PIP) in accordance with the standards of one of several hotel brands that have expressed interest in the site. It is being sold unencumbered by management and without operating systems in place. No historical financials will be provided. However, a Trend Report with estimated income projections based on competitive hotel performance in the Anchorage submarket is available. Downtown Anchorage occupancy rates approach 100% during the summer months, driven by the robust cruise industry. Off-season periods also see healthy occupancy, supported by near double-digit RevPAR growth, reinforcing Anchorage’s status as one of the premier high-growth hotel markets in the United States. Continued growth is expected, fueled by renewed focus on Alaska’s energy and mining sectors. This offering represents a rare opportunity to acquire a full-service, high-rise hotel in a growing market with strong demand drivers. Anchorage benefits from high barriers to entry, with elevated construction and replacement costs limiting new hotel development. Investors may also explore the potential to convert one of the meeting rooms into five additional guest rooms, increasing the total room count to 205 keys. The Pro Forma analysis reflects Anchorage’s strong market fundamentals and is based on upscale-class hotel RevPAR projections (see Agent for details). The Anchorage hospitality market continues to outperform national averages, driven by a booming tourism sector and constrained supply: • RevPAR Growth: Averaging 9.6% year-over-year from 2021–2024 • ADR: Averaged $225 during summer 2024, with peak rates exceeding $300 • Occupancy: Reached 97%+ from June to August 2024 • Seasonality: Strong off-season base supported by government, energy, and logistics sectors • New Supply: No full-service hotels delivered since 2021; limited development pipeline due to construction cost inflation