Baltimore taxpayers are still on the hook for a massive hotel debt after a city-owned Hilton suffered its worst financial year on record, despite charging guests more than ever.
The 757-room Hilton Baltimore Inner Harbor, the region's largest hotel, recorded an occupancy rate of just 52.3 percent in 2025, leaving nearly half its rooms empty on an average night.
The bleak figures come nearly two decades after Baltimore borrowed roughly $300 million in bonds to build the hotel, which opened in 2008 with promises of generating revenue for the city.
Most of that debt remains unpaid, while the city has already spent and refunded $143.7 million to keep the struggling property afloat, The Baltimore Banner reported.
The hotel's latest financial disclosure paints a stark picture of a costly investment that has never lived up to expectations.
Guests paid an average of $203.90 per night last year, the highest rate in the hotel's history. But the higher prices did little to offset the lack of visitors.
Revenue per available room, a key measure of hotel performance, fell to $106.60, its lowest level since 2009. Factoring in inflation, 2025 marks the property's worst year since opening.
The hotel has also never reached the occupancy or revenue targets originally projected.
The hotel's latest financial disclosure paints a stark picture of a costly investment that has never lived up to expectations
Baltimore taxpayers are still on the hook for a massive hotel debt after a city-owned Hilton suffered its worst financial year on record, despite charging guests more than ever
The 757-room Hilton Baltimore Inner Harbor — the region's largest hotel — recorded an occupancy rate of just 52.3% in 2025
Its occupancy peaked at 71.7 percent in 2013 before declining over the years. Last year's figure was its lowest outside the pandemic-affected period between 2020 and 2023.
The financial troubles extend beyond the Hilton.
Hotels across Baltimore's central business district averaged 55.7 percent occupancy in 2025, according to real estate analytics firm CoStar.
The city's downtown hotel market has also shrunk considerably, with available rooms down nearly 6 percent since January 2025, from 8,367 to 7,874.
Among the casualties was the Sheraton Inner Harbor Hotel, which abruptly closed earlier this year.
Kevin Seawright, executive vice president and chief operating and financial officer of the Baltimore Development Corp, which oversees the Hilton, described 2025 as a difficult period for the city's hospitality industry.
He told The Banner that hotel cancellations across Baltimore had reached their highest levels since the pandemic.
But Seawright insisted the property's fortunes are improving, with revenue climbing substantially in 2026 and approaching pre-pandemic levels.
He credited major events, including performances by Morgan Wallen and BTS, an All Blacks rugby event, and a Jack and Jill gathering, as well as increased group bookings through tourism organization Visit Baltimore.
The hotel, which is operated by Hilton Hotels & Resorts, sits beside the Baltimore Convention Center and was intended to attract visitors and convention business while generating income for the city.
Despite its financial struggles, developers are betting that Baltimore can support even more hotel rooms.
MCB Real Estate is planning a 212-room luxury hotel as part of its Harborplace redevelopment, just blocks from the Hilton.
The proposed property would charge an average of $550 per night, more than double the Hilton's average rate in 2025.
