Investment Overview

Marcus & Millichap is proud to serve as the Exclusive Broker and Advisor for the marketing effort of the Radisson Hotel Duluth-Harborview. This iconic sixteen-story, full-service hotel presents an exceptional investment opportunity in the heart of highly desirable Duluth, Minnesota. Featuring a distinguished circular design, the hotel offers 196 guestrooms with picturesque views of the Hillside, City, Harbor, and Lake Superior. Convenient connectivity is provided through the Skywalk system, linking guests to waterfront attractions, shops, restaurants, and cultural landmarks such as the Ariel Lift Bridge, Lake Superior Railroad Museum, and Bayfront Festival Park. The Skywalk also offers easy access to live performances at the DECC and Amsoil Arena. The property has historically and consistently produced strong room revenue figures in excess of $5,000,000 yet also presents increased revenue potential, supported by its strategic location and onsite venues, including extensive event facilities. With six flexible meeting rooms/event spaces totaling nearly 9,000 square feet, the hotel is well-equipped to host corporate conferences, wedding receptions, and a variety of events. For well qualified buyers interested in operating the property on a more limited-service basis, the current ownership is willing to discuss a lease agreement for the food and beverage operations, ensuring a steady income stream for the new owner from day one. The process of applying for historic tax credits has already begun, which may offer significant financial benefits and incentives to a new owner who wishes to undertake an extensive renovation and possible rebranding and repositioning. The facility currently operates in conjunction with an adjacent building which brings the total room count to 268. The seller will retain ownership of this adjacent building and repurpose it with a use outside of hospitality. This drops the hotel’s purchase room count to 196 and will ultimately enhance the overall operational efficiency and profitability of the existing hotel. This arrangement will enable streamlined management and increase revenue potential, allowing the hotel to perform more in line with its comp set’s occupancy and ADR figures, both of which currently lag behind those of our distinguished competitors, leaving room for incoming investor upside potential. In 2013 the hotel underwent extensive repairs and restoration of its building operating systems, with an estimated $3 million spent on the project. This was due to a water pipe burst in the hotel’s basement that required full replacement of the majority of the hotel’s mechanical components including electrical, hot-water supply and HVAC. The hotel boasts extensive guest amenities including a heated indoor pool, hot tub, sauna, and a Business Center, catering to both leisure and business travelers. Harbor 360, the hotel's rotating 16th floor restaurant, offers a unique dining experience with breathtaking views of Duluth and the harbor, complemented by a diverse menu and full bar. Travelers also benefit from ample complimentary onsite parking and rooms equipped with essential amenities such as a kitchenette with a Keurig coffee maker, a safe, HD TV, desk, and unparalleled views. Duluth, MN, draws significant year-round tourism, with over 3 million visitors annually attracted by its scenic beauty, cultural attractions, and diverse outdoor activities. The hotel’s strategic location near Canal Park also hosts annual events such as Bentleyville "Tour of Lights," a holiday tradition drawing over 300,000 visitors annually, the Duluth Airshow featuring the Blue Angels, and Grandma's Marathon, which attracts runners internationally. This centralized tourism area surrounding the hotel, along the shoreline of Lake Superior, also features historic landmarks such as breakwater pier lighthouses, and nearby attractions like the Great Lakes Aquarium, just a short walk from the hotel. For an investor, this influx of tourism situated in an exceptionally high ADR location, alongside brand loyalty to Choice Hotels, significantly increases reliable revenue generation.