Auction slated for York County hotel

A York-area hotel is going up for sale at at time when hotels in general are struggling to recover from the economic blow of the Covid-19 pandemic. 

The Comfort Inn & Suites York was built in 2000 and sits on a 3.52-acre lot.
  • Bidding is scheduled to open Jan. 31 in an auction for the 129-room Comfort Inn & Suites York, which is off Interstate 83 at 2250 N. George St. in Manchester Township.
  • The minimum bid is $1.6 million, according to a listing on the Ten-X auction platform.
  • The three-day sale is being overseen by HREC Investment Advisors, the same specialty real estate firm that helped auction off the former Radisson Hotel Harrisburg in Cumberland County.
  • “The acquisition of the Comfort Inn & Suites York, PA is an attractive opportunity to acquire an investment grade asset at a discount to replacement cost with upside potential in improving margins, generating higher returns,” reads a description on Ten-X.

Why is this happening: It’s unclear, though the Ten-X site indicates the four-story hotel is in receivership. Receivers generally take over hotels when they encounter financial trouble.

  • Mark Von Dwingelo, an HREC broker, declined to comment.
  • Efforts to speak to a manager at the hotel were unsuccessful.
  • The hotel is listed on the website of hotel management company GF Hotels & Resorts. But efforts to reach that company also were unsuccessful.
  • An affiliate of Philadelphia-based GF Hotels took over management of the Radisson as a receiver after the former owners defaulted on a loan from M&T Bank
  • Another clue comes from a 2015 press release from a lender called Aries Capital
  • Aries said then that it loaned $6.1 million to refinence the hotel, The borrower was listed as Simraj Hospitality Management, which is based in Mechanicsburg
  • An executive for Simraj confirmed the hotel is in receivership but declined to comment further.
  • Efforts to reach Aries, which is based in Chicago, were not successful.

The bottom line: Hotels were slammed by the Covid-19 pandemic, with occupancy rates nationwide plunging into the 20s, according to industry research firm STR

  • Occupancy rebounded in the first half of 2021 to near 70%, but it fell through the second half of the year, according to STR. 
  • For the week of Jan. 9 to 15, occupancy was 48.3%, compared to 65.1% for the comparable week in the pre-pandemic year of 2019, STR said.

–by Joel Berg, editor of biznewsPA

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