Hilton Hartford hotel to go on auction block
Bookings have gone down dramatically during pandemic
HARTFORD — The Hilton hotel in downtown Hartford, which took a heavy hit from a dramatic decline in bookings in the pandemic, will go on the auction block in mid-November with a starting bid of $5.5 million, according to the real estate company handling the auction.
Ten-X Commercial Real Estate said on its website Thursday that an online auction will be conducted for the 22-story hotel in the heart of downtown between Nov. 16-18.
In a brief statement, the owners of the Hilton Hartford on Trumbull Street near the XL Center said Thursday they expected the ultimate sales price would be a “multiple of the minimum bid amount.”
Beginning Thursday, the 392-room hotel will be marketed for 45 days prior to the auction.
The owners — Waterford Group and its partners — had no further comment Thursday.
In July, Waterford warned the Hilton could close because of the drop off in corporate bookings and business drawn from such venues as the XL Center and Connecticut Convention Center was so substantial. Waterford told the state labor department it had laid off 124 at the hotel and reduced the hours of another 30.
Waterford confirmed the auction early in September as Hartford’s city council deliberated and later approved an extension of the lease of city land under the hotel for 49 years beyond its expiration in 2022.
Hartford Mayor Luke Bronin argued the extension was critical to attract a buyer. The lease, among other things, requires a new owner to make upgrades to maintain the hotel as a Hilton or other upscale brand and honor a union agreement with the hotel workers.
As an incentive for prospective buyers, the city agreed to a phase-in of annual payments in lieu of taxes, necessary because the new owner will have to contend with a recovery from the pandemic and invest in upgrades.
On its site Thursday, Ten-X said the Hilton could be acquired for far less than building a new hotel. A renovation could update the Hilton’s “dated” appearance, and its well-maintained systems would be a plus.
In addition, the recent closure of two downtown hotels — the Red Lion on Morgan Street and the Homewood Suites on Asylum Street — would reduce the number of competitors for hotel rooms in the city, Ten-X said.
The closing of the Hilton would represent a major blow to downtown revitalization efforts, as restaurants and other shops struggle with the loss of office workers now ensconced at home in the pandemic and the lack of corporate, sports and entertainment events.
The Hilton plays a key role in booking large conventions and sporting events in the city alongside the Marriott Hartford Downtown, also owned by Waterford, at the convention center. The loss of the Hilton would make attracting large events more difficult because of its large number of rooms.