Downtown Homewood Suites hotel sold for $18.7M, renovations planned

An Indianapolis-based hotelier has acquired the Homewood Suites by Hilton Indianapolis Downtown and plans to spend as much as $3 million to renovate the property.

MHG Hotels LLC closed on its $18.7 million purchase of the five-story hotel at 211 S. Meridian St. on Wednesday, acquiring it from Valparaiso-based Good Hospitality Services Inc. and HRC Hotels Inc.

The purchase marks the first downtown hotel property for MHG, which has nearly 20 other properties in central Indiana, Missouri and Florida, and nine other projects in its development pipeline.

“This acquisition reflects our strategic vision to invest in properties that align with MHG’s commitment to quality and excellence,” MHG CEO Sanjay Patel said in a written statement. “With its prime location in Indianapolis’ bustling downtown area and Hilton’s trusted brand reputation, this hotel is an incredible addition to our portfolio. We look forward to providing memorable experiences for our guests and fostering growth in the Indianapolis market.”

The company plans to renovate the property’s 92 rooms, giving each a full and updated kitchen to better accommodate extended-stay guests. The previous owners completed an $8 million renovation of the hotel in early 2020, with work including a new business center, billiards and gaming area breakfast area and an updated front desk.

Located within the historic Weber Building, which at one time was home to the Geddes-Brown Shoe Co., according to the National Park Service, the Hilton-brand hotel is one of a handful of downtown extended-stay properties. Most recently, a dual-branded Homewood Suites and Hampton Inn hotel across West Street from IU Indianapolis opened in 2022, operated by Indianapolis-based Sun Development & Management Corp.

Neal Patel, vice president for MHG, said the city’s continued success in securing major events, paired with the possibility of a new soccer stadium and the ongoing expansion of the Indiana Convention Center, have led the firm to view downtown as valuable to its investment strategy.

“We are very bullish on the downtown market especially with potential new soccer stadium and convention center expansion,” he said. “With new conventions and sporting events like WWE we think that more event will follow. We are actively seeking additional hotel assets to purchase downtown and in surrounding metro areas.”