Buyer sought for Hartford’s former Red Lion Hotel
HARTFORD — The Red Lion Hotel in downtown Hartford, which closed in the spring when the coronavirus pandemic hit, is now up for sale.
“There are parties that are interested,” Michael W. Freimuth, executive director of the Capital Region Development Authority, said. “It’s run the gauntlet, as you can imagine, converting the whole building or maintaining sort of a hybrid.”
Freimuth declined to name those interested in buying the property.
The upper nine floors of the hotel building have been converted to apartments, which are still leasing. Since leasing began last fall, 20% of the 96 apartments — mostly one-bedroom units — are now either occupied or soon will be, according to CRDA.
New York lender DW Partners took over the apartment conversion project and the hotel operation at the Red Lion last year. The original developer, Inner Circle US, ran into a dispute with its first general contractor. Later, Inner Circle faced cost overruns that forced it to seek additional financing and deal with payment disputes with subcontractors.
The conversion’s initial cost of $19.8 million was pushed up by at least $3.2 million, which stalled the project for nearly two years. CRDA is overseeing a yet-to-be released investment by the state of $5.2 million in the conversion to apartments.
DW Partners also is now foreclosing on the property. DW Partners has said its goal was to complete the rental conversion and eventually sell the building to recoup as much of its investment as possible.
DW Partners could not immediately be reached for comment Tuesday.
The 18-story building, which for years carried the Crowne Plaza name, had struggled with hotel bookings, except when there were larger events in the city. Since it was built in the 1970s, the hotel also was relatively isolated from the rest of downtown.
But since the construction of the city’s new minor ballpark, just north of the hotel building, and the surrounding Downtown North redevelopment, the structure will be part of a new neighborhood planned for just north of downtown.
The views from the upper floors of the building are impressive. To the west, there is Dunkin’ Donuts Park and to the east is the Connecticut River. The original developer had envisioned a rooftop bar and lounge to capitalize on those views.
Apartment leasing in downtown has slowed in the pandemic, especially in renewals. And the hotel industry continues to suffer. In addition to the Red Lion guest rooms, the Homewood Suites on Asylum Street also has closed.
Two others — the Hilton on Trumbull and the Marriott Hartford Downtown at the convention center have warned they may have to close or operate in a vastly downsized operation. The hotels cite a plunge in business travel and the closure of sports and entertainment venues such as the XL Center.
DW Partners could not immediately be reached for comment Tuesday.