Baltimore's Inner Harbor sees Sheraton Hotel and Morton's The Steakhouse close

The Sheraton Inner Harbor Hotel and Morton's The Steakhouse near Baltimore's Inner Harbor both closed this week.

The two businesses are the latest to shut their doors, leaving visitors wondering what next.

"No one wants to see buildings close, certainly, and I think particularly in the short term. These are a loss for downtown and certainly for those who patronize them," said Jennifer Vey, the Chief Strategy Officer for the Greater Baltimore Committee. 

Its operators filed a notice in 2025 with the Maryland Department of Labor, indicating 69 employees were expected to be laid off on New Year's Eve. 

However, city leaders said it's sad to see the businesses close, but it doesn't mean it's the end of the building's development. 

"Certainly, the (Baltimore) Convention Center is being very seriously looked at in different means to fund the rehabilitation and a renovation of the convention center, but as a whole, we certainly need to be thinking throughout downtown," said Zachary Blanchard, Baltimore City's councilmember for District 11. 

"All these things that are in the pipeline, you know, it's possible that a new hotel operator may eventually take interest in things like the Sheraton, and certainly with all these investments, we will eventually see a lot of these businesses come back," Vey said. 

Changes set for Baltimore's Harborplace

Some restaurants near Baltimore's Harborplace are set undergo some major changes in 2026. Developer MCB Real Estate is set to begin the $900 million demolition and reconstruction of the space.

"It's important to try to keep some of that dynamism going in the short term, but over the long term, as this work, there'll be disruptions for some period while this work is getting underway, but I think when we come out on the other side, we're all hopeful that we will see a reinvigorated, invigorated Harborplace," Vey said. 

Downtown Partnership of Baltimore wrote in a statement to WJZ stating in part: that they are disappointed to see the Sheraton and Morton's close, but at the same time these decisions reflect a period of transition that many downtowns across the country are experiencing. 

"The Sheraton is a privately owned property, and these decisions reflect a period of transition that many downtowns across the country are experiencing. Downtown Baltimore continues to evolve, and our work is focused on supporting the near-term experience and long-term growth by keeping Downtown clean and welcoming, providing a visible hospitality and safety presence, and connecting with businesses and providing support through tools like the Baltimore Culinary Exchange (BCX)," said Shelonda Stokes, the president of Downtown Partnership of Baltimore.

Stokes said, "At the same time, we are working with City agencies and public and private partners on major investment opportunities and the Downtown RISE framework that aims to drive new development and increased vitality in Downtown."

The Cheesecake Factory is also set to close on January 24, marking the end of an era, but also the start of something new. 

"I think it's really important that we're able to continue at full speed with the redevelopment of the Inner Harbor," said Blanchard.