Sage to renovate neglected Crowne Plaza in Cleveland

CLEVELAND, OHIO Years of neglect have left about 75% of the guestrooms at the dilapidated 470-key Crowne Plaza Hotel Cleveland City Centre unusable, but prospective buyers are planning a US$47 million renovation to bring the property back.

Operator Sage Hospitality Inc. has partnered with Optima Management Co. to buy the 36-year-old hotel out of bankruptcy for US$10 million from Lehman Brothers Holdings Inc. If the acquisition goes through, the joint venture would close the hotel for up to two years in an effort to refurbish it to 4-star quality. Sage and Optima hope to reopen the hotel in time for the debut of a convention center and medical merchandise mart under construction nearby.

Even with only 120 of 470 guestrooms and two of six elevators in operation, the hotel is currently running at about 20% occupancy. Sage Executive Vice President Ken Geist told the Cleveland City Council last week that the Crowne Plaza lost US$2.5 million last year, Crain’s Cleveland Business reports.