Schenectady hotel sold for $8.25 million

The Hampton Inn in downtown Schenectady sold for $8.25 million.

The deed for the 93-room hotel at 450 State St. was filed last week in the Schenectady County clerk’s office for the sale, which occurred in June.

Built in 2007, the hotel is a short walk from Proctors and other downtown destinations.

Schahet Hotels of Indianapolis put the property up for auction in February through the website RealInsight Marketplace in conjunction with Berkadia Hotels and Hospitality.

The starting bid was $2.75 million.

The buyer was HK Corp. of Blackhawk Village, Iowa.

The buyer assumed a mortgage that was assigned to Everwise Credit Union of South Bend, Indiana.

Hemal Patel signed the mortgage, according to a filing in the clerk’s office. It’s unclear how much is now outstanding or why the filing of the deed took so long.

Greg Schahet, president/CFO of Schahet Hotels, forwarded questions about the transaction to the buyer, who didn’t respond.

Mitchell Muroff, a veteran hotel broker at Muroff Hospitality Group in Newton, Massachusetts, wasn’t involved in the deal but said the purchase price is what he would expect for a Hampton Inn in Schenectady.

The price is the equivalent of nearly $89,000 per room.

Schahet Hotels also attempted to sell the 120-room DoubleTree by Hilton at 100 Nott Terrace with a starting bid of $3 million, but no deal came together.

Schahet Hotels owns hotels in the Midwest and is developing others.

Prior to the auction, Schahet said both hotels were performing well with strong occupancy and that it was looking to sell so it could deploy the capital at properties closer to its home base.

The average occupancy rate through August of this year in Schenectady County is 64.2%, which is a 0.6% decrease from last year, according to STR, a hospitality consulting firm.

There were 15 properties with 1,071 rooms in the STR survey.