Developer Takes Back Indianapolis Marriott Downtown for $165M

Indianapolis' second-largest hotel is under contract to be purchased by the original developers of the property.

Indianapolis–Maryland-based LaSalle Hotel Properties has agreed to sell the 622-key Indianapolis Marriott Downtown to affiliates of White Lodging Services Corp. and REI Investments for $165 million. The transaction is expected to close early in the third quarter of 2016.

Indianapolis Marriott Downtown

Indianapolis Marriott Downtown

Merrillville-based White Lodging and Carmel-based REI Investments, along with Kite Cos., developed and opened the 19-story hotel in February 2001. Later in 2004, LaSalle purchased the property for $106 million.

“This acquisition is a reaffirmation of White Lodging and REI’s commitment to continue making strategic investments that will strengthen and support Indianapolis’s reputation as a leading convention and sports destination today and into the future,” Bruce White, White Lodging’s founder, said in prepared remarks.

White Lodging is planning a complete modernization and renovation of all guestrooms, suites, meeting space, lobby and food and beverage outlets. The revamp is scheduled to begin in the first quarter of 2017.

Indianapolis Marriott Downtown ranks as the city’s second-largest hotel, after the nearby 1,005-key JW Marriott. The property is connected to the Indiana Convention Center via skywalk and offers dining at Circle City Bar and Grille, Champions Sports Bar & Grill and Starbucks. Amenities include a fitness center, pool, meeting and event space, Wi-Fi access and a business center.

One of the reasons the companies want to repurchase the hotel is to keep it in sync with JW Marriott to offer enough rooms and event space for corporate meetings, conventions and other large gatherings.

“The purchase of this hotel is our way of going all in with Indianapolis,” added Dave Sibley, president & CEO of White Lodging’s management division. “Marriott Place (which includes the JW Marriott Indianapolis, the Indianapolis Marriott Downtown, and the Fairfield Inn & Suites, Courtyard and SpringHill Suites Downtown), continues to be one of the city’s greatest assets to meeting planners with more than 2,000 rooms and 143,000 square feet of meeting space connected to the Indiana Convention Center. We’re committed to Indianapolis for the long term; we don’t want this value proposition to meeting planners to change.”

Open since 2011, the JW Marriott was also developed by White Lodging and REI. According to the Indianapolis Business Journal, the hotel located one block west of the Marriott Downtown is renowned for hosting high-profile events, including the 2012 Super Bowl and the 100th running of the Indianapolis 500 last month.

Image courtesy of LaSalle Hotel Properties