Investment Overview

Marcus & Millichap is proud to present the Bay Inn of Petoskey, a boutique hospitality asset located in Petoskey, Michigan. The Bay Inn is being offered at $2,900,000, representing an excellent investment opportunity with an NOI of $331,729 and an attractive 11.44 percent cap rate. This two-story, exterior-corridor property is situated directly off U.S. Route 31, offering convenient access to a variety of regional demand drivers. The offering includes 15 exterior-corridor guest rooms in the main building, one standalone cabin, one studio unit, and a three-bedroom, two-bathroom house. Ideally positioned just minutes from both downtown Petoskey and Bay Harbor, the property benefits from strong year-round tourism fueled by Lake Michigan waterfront recreation, top-tier golf courses, nearby ski resorts, the Little Traverse Wheelway, and the Odawa Casino. Perched on an elevated, west-facing site, the Bay Inn offers sweeping sunset views over Little Traverse Bay—an irreplaceable amenity that sets this property apart as a truly unique asset within the Northern Michigan. Located minutes from downtown Petoskey and Bay Harbor, the inn benefits from strong regional tourism demand driven by year-round attractions including waterfront recreation, golf, ski resorts, the Little Traverse Wheelway, and the nearby Odawa Casino. The elevated, west-facing site provides unmatched sunset views—an amenity that distinguishes the Bay Inn as a truly unique asset in the local hospitality market.