Blackstone Group, L.P.

New projects abound in Baltimore's challenging hotel market

New projects abound in Baltimore's challenging hotel market

The historic Lord Baltimore Hotel sits a block away from the Sheraton Baltimore City Center, but less than a week after the 1926 landmark celebrated a multimillion-dollar restoration, the owners of the aging Sheraton on Fayette Street warned of mass layoffs and a potential shutdown.

Baltimore's hotel market is at a crossroads as investments pour into properties new and old amid a nationwide pickup in business and leisure travel. As new hotels open, older properties scramble to remain competitive in a market in which demand for rooms remains healthy but has yet to rebound to pre-recession levels.

"This is a street-corner market, and developers always think they can do...

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