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Overview of Sales Transactions in Manhattan
The following table sets forth an overview of major hotel sales
transactions (defined as those with a purchase price in excess
of $10 million) in Manhattan during the past five years. In
2009, four transactions were identified, including three hotels
that sold as turnkey properties, with sales prices negotiated
prior to the recession.
Michael
C. Pomeranc
Partner, Thompson Hotels
New York: Are Things Getting Better or Are We Getting
Smarter?
New York approached 2010 with some of the greatest risk (and potentially
highest reward) opportunities for the hotel entrepreneur that I
can remember.
Modification of existing assets has become the challenge due to
lingering lackluster performance. Once again, cash is king, and
the limits in the lending market have made acquiring quality assets
in markets with already considerable barriers to entry even more
difficult than before. Despite the abundance of product, the barriers
to entry have caused creative “re-thinking” to be the
most important tool in a developer’s arsenal in order to sustain
viable enterprises from a cash flow perspective. Owners and operators
must be more sensitive and responsive than ever to each other’s
needs to alleviate the difficulties of restarting the growth process.
The travel/tourism sector will always be enamored by the glory and
glamour of New York, and the world’s financial balance (in
trade and currency values) will continue to affect that sector,
and this very tedious balance will continue as always.
The good news, however, is that things are only getting better for
our industry. We have survived the worst and should welcome this
new time of opportunity with open arms, with improved communication
between owners and brands, and with creative approaches to thriving
in this time of change.
| Property |
Date of Sale |
Address |
No. of Rooms |
Seller |
Buyer |
Price |
Price per Room |
| W New York – The Court & The Tuscany |
Apr-10 |
120-130 East 39th Street |
320 |
Starwood Hotels & Resorts Worldwide |
St. Giles Hotels, LLC |
$78,000,000 |
$244,000 |
| Helmsley Carlton House*** |
Mar-10 |
680 Madison Avenue |
160 |
Leona Helmsley/Helmsley Hotels |
Angelo, Gordon & Company and Extell Development Company |
170,000,000 |
1,063,000 |
| Candlewood Suites Times Square South |
Feb-10 |
339 West 39th Street |
188 |
McSam Hotel Group |
Hersha Hospitality Trust |
51,000,000 |
271,000 |
| Hampton Inn Times Square South |
Feb-10 |
337 West 39th Street |
184 |
McSam Hotel Group |
Hersha Hospitality Trust |
56,000,000 |
304,000 |
| Holiday Inn Express Times Square South |
Feb-10 |
343 West 39th Street |
210 |
McSam Hotel Group |
Hersha Hospitality Trust |
58,000,000 |
276,000 |
| Hilton Garden Inn TriBeCa** |
Aug-09 |
6 York Street |
151 |
McSam Hotel Group |
Hersha Hospitality Trust |
62,000,000 |
411,000 |
| Hilton Garden Inn 35th Street** |
Feb-09 |
63 West 35th Street |
298 |
Brack Capital Real Estate |
RLJ Development |
121,200,000 |
407,000 |
| Fairfield Inn at Times Square ** |
Feb-09 |
330 West 40th Street |
244 |
Fashion Times Square LLC (The Lam Group) |
Gehr Development |
99,500,000 |
408,000 |
| Best Western President* |
Feb-09 |
234 West 48th Street |
334 |
Bridgewater Realty, LLC |
Investcorp International Inc. |
150,000,000 |
449,000 |
| Wyndham Garden Hotel Chelsea** |
Nov-08 |
37 West 24th Street |
124 |
McSam Hotel Group |
Gemini Real Estate Advisors |
39,060,000 |
315,000 |
| Hampton Inn 35th Street, Empire State Building** |
Oct-08 |
59 West 35th Street |
146 |
McSam Hotel Group |
Magna Hospitality Group |
46,340,000 |
317,000 |
| Quality Hotel Times Square (now Stay) |
Apr-08 |
157 West 47th Street |
202 |
Hampshire Hotels and Resorts |
Rockefeller Group Development Corp. |
75,000,000 |
371,000 |
| Hotel QT |
Apr-08 |
125 West 45th Street |
139 |
André Balazs Properties / Greenfield Partners |
Room Mate Hotels |
82,000,000 |
590,000 |
| Comfort Inn New York 36th Street |
Jan-08 |
442 West 36th Street |
56 |
McSam Hotel Group |
Gemini Real Estate Advisors |
25,000,000 |
446,000 |
| Hotel Riverview (now The Jane) |
Jan-08 |
113 Jane Street |
211 |
Hotel Associates, Inc. |
BD Hotels/Sean MacPherson, Eric Goode |
27,000,000 |
128,000 |
| Hotel 57 |
Jan-08 |
130 East 57th Street |
200 |
Rockpoint Fund II Acquisitions LLC |
Apple Eight Hospitality Ownership, Inc. |
99,000,000 |
495,000 |
| Hilton Garden Inn Times Square |
Nov-07 |
790 Eighth Avenue |
369 |
Highgate Holdings/Rockpoint Group |
Michigan Retirement |
261,990,000 |
710,000 |
| Hampton Inn Times Square |
Nov-07 |
851 Eighth Avenue |
300 |
Highgate Holdings/Rockpoint Group |
Michigan Retirement |
213,000,000 |
710,000 |
| Comfort Inn Times Square |
Nov-07 |
305 West 39th Street |
78 |
M&R Hotel Times Square, LLC |
Gemini Real Estate Advisors |
31,700,000 |
406,000 |
| Tudor Hotel * |
Sep-07 |
304 East 42nd Street |
300 |
Highgate Holdings |
The Procaccianti Group |
114,000,000 |
380,000 |
| Holiday Inn Soho |
Sep-07 |
138 Lafayette Street |
227 |
Highgate Holdings |
The Procaccianti Group |
130,000,000 |
573,000 |
| On The Ave Hotel |
Jul-07 |
2178 Broadway at 77th Street |
267 |
Rockpoint Group |
Highgate Holdings |
204,000,000 |
764,000 |
| |
(as renovated, assuming a $8.0-million infusion) |
|
212,000,000 |
794,000 |
| Dylan Hotel |
Jun-07 |
52 East 41st Street |
107 |
Fortuna Realty Group (Moinan) |
Hotusa Group/Losan Hotel Group |
78,000,000 |
729,000 |
| Mandarin Oriental |
Feb-07 |
80 Columbus Circle |
248 |
Mandarin Oriental Hotels/Apollo Real Estate Advisors/The
Related Companies |
Istithmar Hotels FZE (acquired 75% of the interest) |
340,000,000 |
1,371,000 |
| Doubletree Guest Suites Times Square* |
Dec-06 |
1568 Broadway |
460 |
GE Pension Trust |
Whitehall/Highgate Holdings/Sunstone Hotel Investors |
300,000,000 |
652,000 |
| W Hotel Union Square |
Oct-06 |
201 Park Avenue South |
270 |
Related Urban Development |
Istithmar Hotels FZE |
285,000,000 |
1,056,000 |
| Embassy Suites * |
Sep-06 |
|
463 |
|
Goldman Sachs |
225,000,000 |
486,000 |
| |
|
|
|
Additional $10 million to convert property to a franchise |
|
235,000,000 |
508,000 |
| Swissotel The Drake |
Apr-06 |
440 Park Avenue |
495 |
Host Marriott Corporation |
Macklowe Properties |
440,000,000 |
889,000 |
| To be demolished for the development of a mixed-use
residential condominium |
| Hilton Times Square * |
Mar-06 |
234 West 42nd Street |
444 |
Forest City Ratner Co. JV Hilton Hotels Corp. |
Sunstone Hotel Investors |
242,500,000 |
546,000 |
| |
|
|
|
Additional $15 million to convert property to a franchise |
|
257,500,000 |
580,000 |
| The Mark Hotel * |
Jan-06 |
25 East 77th Street |
176 |
Mandarin Oriental Hotels |
Izak Senbahar and Simon Elias |
150,000,000 |
852,000 |
| Sold for Condo Conversion |
| Marriott East Side |
Nov-05 |
525 Lexingtion Avenue |
646 |
Strategic Hotel Capital, Inc. |
Prime Property Fund (Morgan Stanley) |
287,000,000 |
444,000 |
| Holiday Inn Express |
Sep-05 |
15 West 45th Street |
125 |
McSam Hotel Group |
MG-45, LLC |
36,500,000 |
292,000 |
| Westin Essex House |
Sep-05 |
160 Central Park South |
605 |
Strategic Hotel Capital, Inc. |
Dubai Investment Group |
400,000,000 |
661,000 |
| Assuming Partial Condo Conversion |
(as renovated, assuming a $50-million infusion) |
|
450,000,000 |
744,000 |
| Portland Square |
Sep-05 |
128-134 W 47th Street |
140 |
David & Lina Putchall |
47th Hotel Associates LLC |
19,300,000 |
138,000 |
| Howard Johnson Express |
Sep-05 |
135 East Houston Street |
45 |
Houston Lodging, LLC |
Gemini Real Estate Advisors, LLC |
13,750,000 |
306,000 |
| Algonquin Hotel |
Sep-05 |
59 West 44th Street |
174 |
Miller Global |
HEI Hospitality |
74,100,000 |
426,000 |
| |
|
|
|
(as renovated, assuming a $3.5-million infusion) |
|
77,600,000 |
446,000 |
| Avalon Hotel |
Aug-05 |
16 East 32nd Street |
100 |
Hotel Stanford LLC |
Ferrado US LLC |
35,700,000 |
357,000 |
| Holiday Inn SoHo |
Aug-05 |
138 Lafayette Street |
227 |
Great Canal Plaza Inc. |
Highgate Holdings |
42,500,000 |
187,000 |
| |
|
|
|
(as renovated, assuming a $4.5-million infusion) |
|
47,000,000 |
207,000 |
| Clarion Park Avenue |
May-05 |
429 Park Avenue South |
60 |
Palace International Properties, Ltd. |
Park Avenue Hotels New York LLC |
11,350,000 |
189,000 |
| Crowne Plaza UN (35 years remaining)* |
May-05 |
304 East 42nd Street |
300 |
InterContinental Hotels Group |
Highgate Holdings |
34,000,000 |
113,000 |
| |
|
|
|
(as renovated, assuming a $10-million PIP) |
|
44,000,000 |
147,000 |
| The Sutton |
Apr-05 |
330 East 56th Street |
85 |
Glenwood Management |
Alchemy Properties |
52,400,000 |
616,000 |
| Rihga Royal* |
Mar-05 |
151 West 54th Street |
506 |
Lehman Brothers |
Blackstone Real Estate Group |
193,000,000 |
381,000 |
| Best Western Convention Center |
Feb-05 |
522-524 W 38th Street |
83 |
Unigroup Hotel LLC |
522 W 38th St NY LLC |
15,785,000 |
190,000 |
| Manhattan Seaport Suites |
Jan-05 |
129-31 Front Street |
57 |
Target Two Associates |
129 Front Realty LLC/Heng Sang Realty |
11,750,000 |
206,000 |
| The Stanhope Park Hyatt* |
Jan-05 |
995 Fifth Avenue |
169 |
Hyatt Hotels |
Intell Management |
70,000,000 |
414,000 |
| Sold for Condo Conversion |
|
|
|
|
|
|
|
*Leasehold Interest
**Property under contract before pre-recession period. Sold as turnkey.
***Includes 15,000 square feet of retail space; assuming residential conversion.
Note: Price for the Rihga Royal includes termination fees paid to Marriott
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