Property History
JLL’s Hotels & Hospitality Group, as sole and exclusive agent for the owner, has been retained to offer for sale the fee simple interest in the 93-room Candlewood Suites Harrisburg I-81 – Hershey Area (the “Hotel” or “Property”). Strategically positioned along the critical I-81 corridor in Pennsylvania's capital region, the Hotel benefits from Harrisburg's diverse demand generators including state government operations, healthcare facilities like UPMC Harrisburg, and a growing logistics sector making it an occupancy leader in its competitive set. Furthermore, the Property from a operates within a resilient Harrisburg market that has a RevPAR around $88 for the May 2025 T-12. New ownership has the opportunity to capitalize on the market’s strong performance by increasing rates post-renovation boosting RevPAR at the Property. The Hotel benefits from Harrisburg International Airport's continued recovery, with 2024 being the busiest year since the record-setting 2019 with nearly 1.5 million passengers (a 10.8% increase over 2023).
· Superb Market Fundamentals: Harrisburg offers a diverse range of demand drivers, including significant leisure attractions such as Hershey Park and the National Civil War Museum, as well as stable corporate demand drivers in the healthcare industry and state government. Due to the breadth and depth of the market in Harrisburg, unemployment has trended lower than the national average allowing the local economy to experience significant expansion. The combination of low unemployment, an expanding economy, and the plethora of demand drivers offers an optimistic outlook for the local lodging industry for the coming years.
· Discount to Replacement Cost: The acquisition of the Hotel represents an opportunity for investors to acquire a well-constructed, upper midscale Hotel at pricing below replacement cost. The cost to develop extended-stay hotels has increased significantly in recent years giving potential investors the opportunity to benefit greatly from this attractive basis.
· Absence of Lodging Supply in Harrisburg: There are no hotels in any stage of development in Downtown Harrisburg or the surrounding seven miles. Lack of meaningful new supply and new branding for the Hotel make for an excellent opportunity for a new owner to regain lost market share.
· Premium extended stay sector growth: The extended stay hotel sector has undergone significant evolution and growth over the past two decades, with a convergence of offerings and increased market share. The sector has adapted to changing consumer preferences, incorporating amenities that cater to long-term stays and promote a work-life balance which has resulted in a surge in demand from all segments as well as investor interest. The sector has proven its investment appeal by consistently achieving higher gross operating profit margins and providing stable, attractive returns for investors. The expansion of brands and geographical distribution further enhances its appeal. Despite widespread capital market dislocation, the select service and extended stay hotel sector remains resilient with favorable debt liquidity, record high average yields, and increasing institutional investment. Expect the sector to remain poised for further long-term growth and offer plenty of opportunities for investors
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