Hodges Ward Elliott is pleased to offer for sale the fee simple ownership in the 216-room AC Hotel New Orleans French Quarter. Located in the New Orleans CBD, a stone’s throw from the French Quarter, the AC New Orleans opened as the country’s first AC by Marriott in November 2014. Two historic, adjacent buildings (the Cotton Exchange Building and the Security Homestead Building) house the AC Hotel, which has prominent frontage on both Carondelet and Gravier Streets. The New Orleans Cotton Exchange Building, built in 1921, is a National Historic Landmark, and has been listed in the National Register of Historic Places since 1977.

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Property Summary

  
		Address:
    221 Carondelet Street  
New Orleans, LA 70130
	
		Year opened 
as a Hotel:

		2014
	
		Rooms:
		216
	
		Total Event
 Space:

        4,138 SF
	
  Amenities:
  Lounge and Kitchen
Fitness Center
Gift Shop
Valet Parking

  Managment:
  Unencumbered

  Conveyance
  Fee Simple

  Labor
    Non-Union

Investment Highlights

ENORMOUS UPSIDE FOR NEW OWNER (~75% RPI)

AC has arguably been Marriott’s most successful brand launch ever. Since the AC New Orleans French Quarter opened, Marriott has established 126 AC hotels in the US and Canada (as of YE 2024). These properties are far more efficient to operate than full-service lifestyle hotels but offer similar and sometimes higher ADR. Additionally, AC Hotels garner enormous appeal from consumers as they are part of the Marriott system and create a comfortable and elevated experience for guests, yet do not feel cookie-cutter or sterile like so many traditional brands.

Per Marriott, of the 126 AC hotels in the US and Canada, 99 report to STR – these hotels achieve an average RevPAR Penetration Index of 118.5% versus their respective competitive sets. The AC New Orleans’ current RevPAR trails its competitive set, the local submarket, STRs upper upscale segment and the AC brand by a meaningful margin (average of just ~75% RPI), demonstrating the enormous potential of this Property under new ownership/management.

THE PREMIER “SELECT SERVICE” BRAND

Originally positioned as a ‘lifestyle’ hotel, AC has clearly established itself as a fashion-forward, select-service brand, competing with Marriott’s traditional select-service offerings, but typically achieving significantly higher ADR. As a result, AC hotels tend to sell for more than traditional select service hotels like Courtyard, Hampton Inn and Hilton Garden Inn. Over the past four years, there have been ~300 sales of these competing brands at more than $200,000 per key. The average sales price for an AC Hotel (28 sales recorded) is nearly 30% higher (closer to $300,000 per key) than the average for the best Hilton Garden Inns/Hampton Inns/Courtyards.

A+ LOCATION – CBD/FRENCH QUARTER

The AC features an excellent location in the New Orleans CBD on Carondelet Street, between Gravier and Common Streets, ideally located less than two blocks from Canal Street/Bourbon Street/French Quarter. The location allows for quick access to the city’s top attractions and destinations:

UNPARALLELED LEISURE DEMAND

Perhaps no city is better at hosting leisure travelers than New Orleans. Prior to the pandemic, visitation to New Orleans peaked at 19.75 million people who spent $10.5 billion in 2019. In 2024, this number rebounded to 19.1 million and over $10 billion spent. Total passenger traffic at New Orleans’ airport was almost 4% greater last year than in 2023 and represents 96% of peak. Notable leisure demand generators include The French Quarter, festivals like Mardi Gras and Jazz Fest, the National WWII Museum, Caesars Casino, the New Orleans Cruise Port, professional and college spring events, music and dining.