The Palace Saloon and Vacation Rentals

The Palace Saloon offers a rare opportunity to acquire a highly visible, income‑producing mixed‑use property in the heart of downtown Sault Ste. Marie. Situated on 0.16 acres along Portage Avenue, the city’s primary pedestrian corridor, the property sits steps from the Soo Locks, one of Michigan’s most visited attractions drawing approximately 500,000 visitors annually. This prime location ensures exceptional year‑round visibility and consistent foot traffic.

The three‑story building operates as a well‑established restaurant and saloon on the main level, benefiting from strong exposure to both local patrons and the steady flow of tourists visiting the Locks. The upper floors feature three updated rental units, currently functioning as successful vacation rentals, providing diversified income streams and strong short‑term rental demand driven by the downtown location.

The sale includes a liquor license and all restaurant and bar equipment, offering a turnkey opportunity for operators or investors seeking a fully equipped hospitality asset with built‑in residential income. With its strategic position on Portage Avenue, proximity to major tourist activity, and established operational infrastructure, The Palace Saloon stands out as a premier mixed‑use investment in Sault Ste. Marie’s downtown district.

The iconic Palace Saloon, established in 1903 and located in the heart of downtown SSM, is now for sale! This well-established restaurant is known for its unbeatable atmosphere, long-standing reputation, and loyal customer base. Featuring a stunning original mahogany bar, cozy ambiance, and a full-service kitchen, the Palace serves up a beloved mix of Mexican and American cuisine — including time-honored recipes dating back over a century. Renowned for its chili con queso, expansive tequila bar, and oversized margaritas, this turn-key opportunity combines historic charm with strong financial potential. In addition to the thriving restaurant and bar, the property includes three updated rental units currently operating as Airbnb: a studio, a 1-bed, and a 3-bed apartment. A fourth space offers potential for conversion into another studio unit, creating even more income opportunity. Whether you're an investor or an owner-operator, this is a rare chance to take over a successful business with multiple revenue streams in one of Northern Michigan's most visited cities.