50 Capital Ave
Battle Creek, MI 49017
Kellogg's DoubleTree Downtown Battle Creek · Hospitality Property For Sale · 174,064 SF

HREC Investment Advisors (“HREC IA”) is pleased to offer for sale the fee-simple interest in the 179-guestroom Kellogg's DoubleTree by Hilton Downtown Battle Creek, located in Battle Creek, Michigan. The Hotel is located directly next door to Kellogg's corporate headquarters, the largest demand generator in the city. Battle Creek is also the long time home to the W.K. Kellogg Foundation, with strong ties in the community. Additionally, Battle Creek is home to Fort Custer Industrial Park – one of the premier international business parks in the Midwest, with over 13,000 people employed, and the headquarters of Kellogg Company and Post Cereals. Other nearby demand generators include the Binder Park Zoo, Art Center of Battle Creek, W.K. Kellogg Airport, Binder Park Golf Course, and Fort Custer Recreation Area. The Property has received approximately $3.5 million, or approximately $20,000 per key, of capital expenditures to its rooms, pool, fitness center, corridors and conference space to reach DoubleTree standards. A new owner will have the opportunity to complete renovations to the lobby, bar, and restaurant. Upon completion of the renovations, the restaurant has a unique opportunity to reposition and remarket itself to improve performance. In addition to the Hotel, there are four floors that may, or may not, be included in the transaction. The floors are currently vacant and also available for sale. Upside can be realized for an investor to convert these vacant floors to 53 apartments, and activate the DoubleTree brand. The acquisition of the Kellogg's DoubleTree by Hilton Downtown Battle Creek represents a unique opportunity to acquire at below replacement cost, the fee-simple interest in a premium-branded, full-service hotel with significant operational upside potential located directly next to the corporate headquarters of Kellogg's. The Hotel is currently closed during the COVID-19 pandemic. The property’s distinctive top floor (16th) meeting space offers a competitive advantage with excellent views of downtown with its own kitchen, allowing a new owner the opportunity to creatively capitalize on this one-of-a-kind feature. The Hotel is also located within an opportunity zone which offers temporary deferral, step-up in basis, and permanent exclusion to capital gains for owners who complete the renovation with a long-term hold.