The 201-room Four Points by Sheraton BWI Airport plans to cease operations on Nov. 30.
The franchised property needs a roughly $2 million renovation to get it up to the standards of Starwood Hotels and Resorts, owner of the Sheraton brand, Carnes said, and it would be hard to obtain a return on investment.
The hotel has taken a hit from local market conditions, such as the federal sequestration and job cuts, he said.
Meantime, the Maryland Aviation Administration is in the early stages of seeking ideas for a new airport hotel that would have direct access to the airport terminal. Carnes said the new hotel would have added competition to the Four Points.
Jonathan Dean, a spokesman for the Maryland Aviation Administration, said the agency had reached an agreement with the Four Points operator to extend the lease for at least five years, but the needed property improvements proved to be a barrier to that plan.
“There are no hard feelings and it wasn’t any one situation that led us to an exit,” Carnes said.
The Maryland Aviation Administration will soon begin soliciting hotel management companies that may have interest in taking over the property for at least the next five years.
The Four Points employees 105, and Carnes said he has secured new jobs for 40 of the workers at other area hotels.
Michener’s Restaurant inside the property will also close. The hotel has been a popular spot for meetings, conference and banquets.
The Four Points, which opened in the late 1960s as the Friendship International Hotel, is the only hotel that sits on the grounds of BWI.
Creative Inns is the current owner of the hotel.
Hotel management notified clients of the closure in a memo this week.
“We would like to sincerely thank all our clients for their years of patronage and hope that the service we provided met your expectations,” the memo said.