84 Sipe Avenue, Hummelstown, PA 17036

Property Overview

This is a rare opportunity to acquire a fully renovated Spark by Hilton situated directly on Chocolate Avenue, the most critical value driver in the Hershey market. Priced at $15,000,000 ($125k/key), the Spark is priced conservatively $60k+/- per key below replacement cost and includes a valuable 2+/- acre retail out-parcel conservatively valued at $175,000+/-. Since its September 2024 "full gut" conversion, performance has soared, achieving a $136 ADR (up from $80 YOY) and delivering a $1.01M NOI on $2.89M in room revenue for 2025. Leveraging Hilton’s #1-ranked modern infrastructure reservation system with direct booking" percentage among the highest in the industry and a location just 2.8 miles from Hersheypark the largest amusement park in Pennsylvania (3,300,000 annual visitors), the property is poised to capture comparable $188 ADR and 73% occupancy seen at the nearby competitors Tru by Hilton and Fairfield Inn. Given the proximity to the Hershey Medical Center and three major manufacturing plants, this is a dominant legacy-location play with diverse demand generators and significant immediate upside.

Location & Competitive Advantage

The standout attribute of the Spark Hershey is its proximity to Hersheypark and the broader Hershey entertainment district. The Hotel is situated just off Chocolate Avenue 2.8 miles south of Hersheypark. Key attractions such as Hershey Gardens and Hersheypark Stadium lie within two miles.

This advantageous location delivers multiple competitive benefits:

- Primary draw for leisure travelers and families targeting Hersheypark and Hershey’s Chocolate World

- Incremental demand during off-peak periods via regional drive markets and group/meeting stays looking for a base near the Hershey attractions

- Cross-marketing and package opportunities with Hershey Entertainment & Resorts, leveraging synergy with the park, entertainment venues, and local events

Nearby amenities (e.g. Giant Center, Tanger Outlets) and the Hotel’s convenient access to Harrisburg International Airport (about 11 miles) further enhance its appeal to both domestic and regional travelers.

Product & Guest Proposition

The Spark Hershey’s 120 rooms will be positioned to deliver:

- Comfortable, well-appointed guest rooms with essential amenities and modern finishes

- Free Wi-Fi in all rooms and public spaces, digital check-in and key, streaming entertainment access

- Complimentary self-parking and a daily bagel bar or light breakfast offering (in line with existing Spark by Hilton properties)

- Pet-friendly accommodations (subject to a pet fee structure)

- Smart cost structure with efficient layout, limited service overhead, but on-brand Hilton service and reliability

The Property’s guest proposition targets value-conscious travelers and families who prioritize location and convenience, rather than full-service luxury amenities.

Market and Demand Drivers

- Theme park visitation & family travel: Hersheypark remains one of Pennsylvania’s premier attractions, drawing millions of visitors annually

- Event and entertainment demand: The Giant Center, Hersheypark Stadium, and other venues create periodic demand spikes for rooms

- Regional corporate and drive markets: Businesses in central Pennsylvania and the Hershey region will find Spark Hershey a viable lodging option for cost-effective stays

- Package and bundling opportunities: Collaborations with Hershey Entertainment & Resorts can help capture package business combining lodging + park admission + dining

Financial & Strategic Outlook

With a Hilton affiliation and access to Hilton Honors reservation channels, the Spark Hershey is expected to benefit from brand distribution advantages and loyalty guest flow. The cost-efficient model of Spark hotels—emphasizing essentials over frills—supports competitive positioning in the Hershey lodging spectrum (between economy and full-service). As a result, the Property is well-positioned to capture incremental share in the Hershey market, especially among price-sensitive leisure travelers who still demand location and consistency.