1028 CANAL ST - LEASEHOLD INTEREST FOR SALE (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 operate 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. The opportunity to acquire the leasehold interest in 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.

This opportunity is to acquire the tenant's leasehold position and does not include the underlying real estate.

Highlights

• Opportunity to acquire 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.