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Baltimore’s Sheraton Inner Harbor Hotel Closes, Impacting Downtown Economy

Exterior view of the Sheraton Inner Harbor Hotel showing closure signs.

Baltimore, January 16, 2026

The Sheraton Inner Harbor Hotel in Baltimore has permanently closed, leading to 69 layoffs and creating a significant gap in the downtown economy. This closure is part of a broader trend impacting the local hospitality sector. Concern has been raised by residents and business owners due to the economic repercussions and decrease in tourism. While recent closures highlight ongoing challenges, plans for the area’s redevelopment offer hope for future growth.

Baltimore’s Sheraton Inner Harbor Hotel Closes, Impacting Downtown Economy

Baltimore, Maryland – The Sheraton Inner Harbor Hotel, a significant establishment in downtown Baltimore, has ceased operations as of December 31, 2025. This closure has resulted in the layoff of 69 employees and has left a notable vacancy in the city’s hospitality sector.

Details of the Closure

The hotel, located at 300 S. Charles Street, was attached to the Baltimore Convention Center and featured over 300 rooms. The Maryland Department of Labor reported that the closure occurred on New Year’s Eve, leading to the termination of 69 staff members. Additionally, the hotel’s ground-floor restaurant, Morton’s The Steakhouse, has also closed its doors.

Impact on Downtown Baltimore

The closure of the Sheraton Inner Harbor Hotel is viewed as a significant setback for downtown Baltimore. Residents and business owners have expressed concern over the loss of a key establishment that was integral to the area’s economy and tourism. The hotel’s proximity to Camden Yards, a major sports venue, further emphasized its importance to the local community.

Broader Trends in the Hospitality Industry

This event is part of a broader trend of closures in the downtown area. Other notable establishments, such as H&M, Bubba Gump Shrimp Co., Ripley’s Believe It or Not!, P.F. Chang’s, and The Fudgery, have also ceased operations in recent times. These closures highlight the challenges faced by businesses in the post-pandemic era, including shifts in consumer behavior and economic uncertainties.

Future Prospects and Redevelopment Plans

Despite the recent closures, there is optimism about the future of downtown Baltimore. Plans for redevelopment and revitalization are underway, aiming to attract new businesses and residents to the area. The city’s commitment to economic development and urban renewal suggests potential opportunities for growth and transformation in the coming years.

Frequently Asked Questions (FAQ)

What led to the closure of the Sheraton Inner Harbor Hotel?

The Sheraton Inner Harbor Hotel ceased operations on December 31, 2025, resulting in the layoff of 69 employees. The specific reasons for the closure have not been publicly disclosed.

How has the closure affected downtown Baltimore?

The closure is considered a significant setback for downtown Baltimore, impacting the local economy and tourism. The hotel was a key establishment in the area, and its absence is felt by residents and business owners.

Are there other businesses that have closed in downtown Baltimore recently?

Yes, other notable establishments, including H&M, Bubba Gump Shrimp Co., Ripley’s Believe It or Not!, P.F. Chang’s, and The Fudgery, have also ceased operations in recent times.

What are the future plans for the Sheraton Inner Harbor Hotel property?

As of now, there are no publicly disclosed plans for the redevelopment or future use of the Sheraton Inner Harbor Hotel property.

Key Features of the Sheraton Inner Harbor Hotel Closure

Feature Details
Location 300 S. Charles Street, Baltimore, Maryland
Closure Date December 31, 2025
Number of Employees Laid Off 69
Associated Restaurant Morton’s The Steakhouse
Impact on Downtown Significant setback for the local economy and tourism
Other Recent Closures in Downtown Baltimore H&M, Bubba Gump Shrimp Co., Ripley’s Believe It or Not!, P.F. Chang’s, The Fudgery
Future Redevelopment Plans No publicly disclosed plans as of now

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STAFF HERE BALTIMORE WRITER
Author: STAFF HERE BALTIMORE WRITER

The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.

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