Investment Overview

Marcus & Millichap is proud to present the Homewood Suites by Hilton Indianapolis Carmel, located at 11355 North Meridian Street in Carmel, Indiana. This upscale, extended-stay hotel features 137 well appointed guestrooms spanning three stories. The Hilton Worldwide Internationalbranded hotel is located just off US Highway 31, close to I-465, just five minutes from IU Health North Hospital. The property maintains amenities including an indoor and outdoor pool, business center, fitness center and meeting rooms. As of February, upscale hotels within the Indianapolis Loop submarket experienced a 5.3% growth in revenue per available room (RevPAR), indicating a strong market environment poised for continued revenue expansion and improved cash flow. In 2024, the hotel achieved a RevPAR penetration of 134%, with a three year average of 131%, positioning it for strategic pricing flexibility and significant revenue optimization opportunities. The hotel recently generated $5.56 million in gross revenue, with a net operating income (NOI) of $1.78 million, reflecting a 32.1% NOI margin for 2024. With highly efficient operations, a new investor stands to benefit from enhanced cash-on-cash returns and overall investment profitability. This hotel investment opportunity in Carmel, Indiana, within the Indianapolis-Carmel-Anderson, IN MSA, is in a thriving, affluent region with a diverse economy, highly educated workforce, and strong quality of life. The area outperforms national averages in key economic indicators, driven by healthcare, life sciences, technology, and manufacturing sectors, along with strong population growth and high household income, fueling demand for hospitality services. Carmel’s accessibility is enhanced by Indianapolis International Airport (IND – 28.1 miles) offering direct flights to major cities. Well-maintained highways, including I-465 and US-31, ensure easy access to Indianapolis and other key Midwestern cities like Chicago, IL, Louisville, KY, and Cincinnati, OH, further boosting demand for hotel accommodations. The healthcare sector in Carmel plays a significant role in driving economic activity, with several major institutions contributing to the area’s growth. IU Health North Hospital (0.8 miles), a full-service facility offering both adult and pediatric care, serves as a cornerstone of the region’s healthcare infrastructure, employing a large number of staff and attracting patients, families, and medical professionals. The presence of other prominent healthcare systems, including Ascension St. Vincent (4.9 miles) and Community Health Network (0.9 miles) further solidifies Carmel as a key healthcare hub. These healthcare institutions generate consistent traffic, ensuring steady demand for services and amenities in the area, making Carmel an attractive location for both medical professionals and visitors seeking medical care. Carmel is home to a variety of large employers that significantly contribute to its economic growth. Major corporations such as CNO Financial Group (0.7 miles), Allegion (0.8 miles), and MISO Energy (1.6 miles) have established a strong presence in the area, creating job opportunities and attracting business travelers. The region also hosts leading companies like Delta Faucet (0.6 miles), Telamon Corporation (1.5 miles), NextGear Capital (1.2 miles), GEICO Corporate Office (1.8 miles), and RCI, along with financial and technology firms like Capital Group (1.7 miles) and Liberty Mutual (2.5 miles). These businesses not only provide a steady flow of corporate visitors but also support the local economy through employment and economic investment. Carmel’s strong corporate presence makes it a hub for professionals across various industries, contributing to the city’s continued prosperity. The presence of several prominent institutions of higher education in the vicinity generates a steady flow of visitors. Within a reasonable driving distance are Indiana University-Indianapolis (IU Indianapolis – 13.9 miles), Butler University (8.2 miles), University of Indianapolis (20.6 miles), and Marian University (12.0 miles). These institutions contribute to consistent demand from visiting faculty, students, alumni, and families attending events such as graduations, conferences, and sporting events. The region is a magnet for tourists, drawn by a wide array of attractions. Indianapolis boasts the iconic Indianapolis Motor Speedway (16.3 miles), the engaging Children’s Museum of Indianapolis (10.7 miles), the culturally rich Eiteljorg Museum of American Indians and Western Art (14.0 miles), the comprehensive Indiana State Museum (14.6 miles), the scenic White River State Park (14.4 miles), the renowned Newfields (Indianapolis Museum of Art – 10.6 miles), and the immersive Conner Prairie Interactive History Park (8.8 miles). Carmel itself provides a unique tourist experience with its Allied Solutions Center for the Performing Arts (2.3 miles), the charming Village of WestClay (4.2 miles), and numerous festivals and events throughout the year. Additional attractions such as the Carmel Arts & Design District (3.0 miles), Midtown Plaza (2.9 miles), and the Monon Greenway (1.6 miles) enhance the region’s appeal. Carmel is undergoing significant economic development, with several major projects underway. The Muse is a $69 million development that will feature 285 luxury apartments, 25,000 square feet of office and retail space, and a 364-space public parking garage. Another prominent project, Proscenium II, a $29 million, five story building, will offer 48 rental units, seven penthouse condominiums, and 16,000 square feet of ground floor space for restaurants and office use. In addition, Onyx+East is constructing new townhomes in the area, adding to Carmel’s residential offerings. The 1st on Main development, located at the northeast corner of Main Street and Range Line Road, is a $40 million mixed-use project that will include 35 apartments, eight two-story condominiums, a 310-space public parking garage, and a four-story, 73,000-square-foot office building with restaurant space and a private rooftop terrace. The Monon Square North Redevelopment, set to begin in 2025, will revitalize the area east of the Monon Greenway, replacing the former Monon Square shopping center with mixed-use buildings that include residential and commercial spaces along with enhancements to the Monon Greenway. Additionally, plans are underway to expand and renovate the Carmel Police Department facilities to accommodate the growing community.