High-profile downtown Dallas hotel hits market at $55 million

A high-profile downtown Dallas hotel is on the market.

The nearly 300-room Crowne Plaza Dallas Downtown by IHG at 1015 Elm St. is up for sale with an asking price of $55 million, said broker Salman Tabani.

His Plano-based firm is handling the listing. The property went on the market earlier this week.

“The $55 million is a starting point,” he said. “Any bona fide offer is [something] we’re going to take a look at and present to him. …The seller is retiring.”

Built in 1969, the 23-story building has undergone multiple renovations in recent years.

D-FW Real Estate News

More than $10 million in upgrades were done to the property in 2019, and another partial renovation was completed last year, according to the listing and previous Dallas Morning News reporting.

The roughly 450,000-square-foot building has 30,000 square feet of event space as well as a rooftop pool. The hotel is near the West End and across the street from Dallas’ tallest building — Bank of America Plaza.

The ideal buyer is someone looking to get into the hotel business, Tabani said.

“They can maybe change the brand. We had Marriott and other brands that have taken a look at the property, and they’re very interested in it,” he said.

The property is owned by TOG Hotels Downtown Dallas LLC. The LLC is controlled by California-based TOG Hotels owned by Terry Tognazzini.

The Dallas Central Appraisal District valued the property at just over $17 million for tax purposes. Such values often trail market values.

Tabani said real estate firm Colliers recently appraised the property at $66 million.

The hotel has faced financial difficulties. In February, TOG Hotels Downtown Dallas LLC filed for Chapter 11 bankruptcy protection in the Northern District of Texas. The company reports $10 million to $50 million in both assets and liabilities.

Tabani said the bankruptcy is expected to be dismissed later this month.

Universal Hospitality Solutions assumed management of the high-rise hotel in May. The firm said it was in the process of implementing several property updates, such as upgrades to bedding and recarpeting the guest floor corridors, news website Hotel Management reported.

North Texas is one of the largest hotel markets in the country. At the end of March, Dallas had the nation’s largest hotel construction pipeline with 203 projects that would add nearly 24,500 new rooms, according to Lodging Econometrics’ U.S. Hotel Construction Pipeline Trend Report.

$3B D-FW master-planned project gets zoning green light and other real estate news