1028 CANAL ST - HI NEW ORLEANS HOSTEL

1028 Canal Street, positioned on world-famous Canal Street at the gateway into New Orleans' iconic French Quarter, offers a rare opportunity to sublease the leasehold interest for a hospitality asset on one of the city's most recognized corridors. Located on the corner of Canal and Rampart Streets and catty-corner to the Saenger Theatre, the property benefits from exceptional visibility and convenient access via both the Rampart-St. Claude and Canal Street streetcar lines in a setting where tourism — the city’s main economic driver — and historic New Orleans converge. The site currently operates as HI New Orleans, a 44-room and 210-bed hostel with a combination of extraordinarily well-maintained private suites and dorm-style accommodations. This asset represents one of the most strategically positioned hospitality plays available in New Orleans today — an operational platform with proven performance, multiple repositioning paths, and an irreplaceable Canal Street address.

The opportunity offers multiple paths for an incoming operator:

• Maintain the current floor plan and continue to operate as a hostel while adding revenue-generating amenities to existing available space, i.e. lobby bar
• Reposition the hostel into a conventional hotel with a mix of standard rooms and petite rooms, or standard rooms and larger suites, or by converting the existing dorm-style suites into 3, 4, or 5-bedroom accommodations suitable for larger groups or families, while also reprogramming the existing lobby and common areas to be revenue-generating
• Keep some hotel rooms (the en-suite units), reprogram the dorm style as amenities (gym, co-working, etc) while reprograming the existing lobby and common areas to be revenue-generating

In all scenarios, the large lobby and common areas create meaningful value-add potential through thoughtful activation thus driving direct revenue (lobby bar) as well as increased RevPAR. As the current HI New Orleans identity is tied to the Hostelling International brand, a new operator would have the opportunity to rebrand the property under its own flag and vision.

Highlights

• Opportunity to sublease the leasehold interest for an existing hospitality asset on Canal Street
• Currently configured with 44 rooms and 210 beds comprised of private suites and dorm-style accommodations
• Potential to reposition the asset from hostel use into a hotel-oriented format; dorm-style suites may be converted into 3, 4, or 5-bedroom accommodations for large groups and families
• Large existing lobby and common areas offer strong activation potential for added revenue and guest-facing amenities. Opportunity to introduce a lobby bar for hotel guests and locals/tourists alike
• Being put into service in late 2017 after a complete gut renovation, the building is in very good condition and has been meticulously maintained
• Offering includes all of 1028 Canal St and a portion of 1036 Canal St under a long-term lease structure
• Also includes the attached Bésame restaurant as a subtenant
• Voted “Best Large Hostel” in North/Central America by Hostelworld travelers for 2024 and 2025

Please contact broker for additional information regarding this opportunity. Financial information is available upon execution of a confidentiality agreement.