WE Offer OFF Market Hotels for Sale in NYC - Hotel Restructure and Management in NYC
Since the premiere edition of the 'Manhattan Hotel Report 2010,' dealing with the Manhattan hotel industry, was released by Domain Properties in February 2010, hotel sales continue to go through the roof in New York City. Domain Properties assists buyers and sellers of 'off market' hotels and offer direct discreet buyer to seller meetings. With rising hotel rates and high occupancy levels, the Manhattan hotel industry is a lucrative market for investors. Luxury hotels are in highest demand – especially with international travelers who want to stay in Manhattan.
NYC Hotels – Expected To Open Mid-2010
|
Hotel Name |
Hotel Type |
Number of Rooms |
Address |
Neighborhood |
|
Trump Soho |
Condo-Hotel |
391 |
246 Spring Street |
SoHo |
|
Staybridge Suites - Times Square |
Limited-Service |
310 |
310- 334 West 40th Street |
Midtown West |
|
Comfort Inn Lower East Side - |
Limited-Service |
32 |
136 Ludlow |
Lower East Side |
|
The Chatwal New York |
Boutique |
88 |
128-130 West 44th Street |
Midtown West |
|
Mondrian SoHo |
Full-Service |
270 |
150 Lafayette Street |
SoHo |
|
48 Lex |
Extended Stay |
124 |
517 Lexington Avenue |
Midtown East |
|
Cassa NY Hotel & Residence |
Hotel + Condo |
166 |
66 West 45th Street |
Midtown West |
|
James New York SoHo |
Boutique |
114 |
27-31 Grand Street |
SoHo |
Source: http://www.hoteltechresource.com/article48325.html
The above table indicates just a few of the NYC hotels slated for development during this second half of 2010. Forty-six hotels are scheduled to open in New York City before the end of the year. More than six hotels will have opened between June and August.
In the first half of 2010, nine hotels opened and added 1633 rooms to the NYC hotel industry. During the second half of the year, more than 5100 extra rooms will be available in the city. This thriving global center will have 86,500 hotel rooms by year's end.
Another 4000 rooms are expected to be added in the near future. NYC developments for 2011 include Clarion Brooklyn (65 rooms) on 1120 36th Street in Brooklyn, NoMad Hotel (160 rooms) on 1170 Broadway at 28th Street, and Holiday Inn Express (198 rooms) at 505 W. 43rd Street.
In July, the Hyatt Hotels' 184-room Andaz opened at 485 Fifth Avenue at 41st Street. This site will be fully operational in September. Hyatt already operates the Grand Hyatt on 42nd Street in Manhattan, According to Smith Travel Research, Hyatt will open four NYC hotels - two under the Andaz brand (including a 253-room Andaz at 75 Wall Street) and two under the Hyatt Place brand.
As well, the 607-room InterContinental Hotel Times Square opened its doors. This development is the largest ground-up Manhattan hotel to go up in eight years. Actually, InterContinental will open four hotels in New York City as well as others under the Holiday Inn Express and Staybridge Suites brands.
Lower Manhattan welcomed the 58-story W Downtown Hotel & Residences at 123 Washington Street. The ultra-modern Eventi Hotel in Chelsea at W. 30th St. opened in May and The Gansevoort Park welcomed guests in July. Other developments include the 83-room Chatwal New York at 130 West 44th Street and the Cassa Hotel and Residences (an example of the luxury market) at 70 West 45th Street.
Well-known luxury NYC hotels have changed hands in recent months. In April 2010, the W New York – The Court & The Tuscany - was bought by St. Giles Hotels, LLC. The McSam Hotel Group sold four hotels to the Hersha Hospitality Trust. The four hotels are Hilton Garden Inn in TriBeCa, Holiday Inn Express, and Hampton Inn, as well as Candlewood Suites. Keep in mind that Times Square is one of the most popular areas in New York City.
September will see the opening of the 114-room James New York and the 133-room Fairfield Inn & Suites at 181 Third Avenue in Boerum Hill, Brooklyn. The lower-end Fairfield Inn New York Manhattan Chelsea on W. 28th is planning a September debut. Other hotels will be coming to the Bronx and Queens.
Some owners of the future NYC hotel developments will be foreign operators. US real estate continues to appeal to international investors. The US system accommodates foreign buyers. International investors have to follow certain guidelines but the process is straightforward and foreign-friendly for investors from outside the US.
In 2009, 506 hotel transactions (including individual, portfolio, merger and acquisition transfers) took place. In the first half of 2010, 322 hotel sales (at least $2.59 billion in hotel properties) and property transfers have been completed already in New York City. During the same period in 2009, there were 231 deals (worth $1.82 billion). As a percentage of overall property investments, hotel sales have increased from less than 8% to more than 10%. Major hotel chains are putting out the welcome mat in New York City.
Successful hotel chains are not in the habit of opening in depressed areas. All hotel buyers and sellers can take comfort in the fact that top hotel chains are expanding in the Big Apple. This activity indicates the strength of the NYC hotel industry at this time. The Marriott alone will open five hotels in the city under the Courtyard and Fairfield Inn brands. Starwood is opening six hotels under the Sheraton, Four Points by Sheraton, and Aloft, as well as W and Element brands.
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Buyer's Market
There never was a better time to buy a NYC hotel. Occupancy rates are going through the roof. They soared to more than 90% (an 8% increase over 2009) in Manhattan during May, 2010. The condo-hotel Trump Soho, offering 300 rooms for short-term guests, has been brining in revenues of 30 percent above internal predictions. In addition, it is possible to pick up a quality NYC hotel for a bargain.
Nobody is worried about competition from other hotels. Some experts suggest that new hotels are synonymous with new life. They will result in more people coming to live in the neighborhood.
Since most hotels offer unique features, multiple hotels can survive in Manhattan. Within its different areas, the Manhattan neighborhood can support various hotels. The accommodations differ in size, style, and location.
Some hotels target the luxury market. Modern consumers associate luxury with exceptional quality – not just extravagant touches. The NYC Real Estate scene is a diverse environment with luxurious rooms as well as simpler but comfortable accommodations. As the US economy recovers, NYC is expected to continue as a thriving metropolis with a booming real estate market.
New York, New York, showed the highest ADR (5.4% to US $209.42) in the first half of 2010. The Big Apple achieved a RevPAR of 15.2% putting it at US $162.56. Only four markets (New York, Boston, New Orleans, and Miami–Hialeah, Florida) reached a RevPAR over ten per cent.
Seller's Market
Hotel sellers also recognize the demand. Any owner who needs to raise quick capital is seizing the opportunity to find a buyer. As the country recovers from an economic downturn, many people need capital to cover debts. Therefore, they are willing to let go of their property.
Several New York hotels experienced challenges (defaults, foreclosure, receivership, or bankruptcy) in this recent financial crisis. One-third of hotel transactions in the first half of 2010 involved distress conditions. Banks do not like keeping these properties because they are expensive to keep on their balance sheet.
Investor's Market
Therefore, investors can buy a hotel at a reasonable price and turn it into a paying venture in the revived economy. Troubled hotels that have sold already included the W Hotel on Union Square, the Four Seasons on 57th Street, and the Time Hotel on 49th Street. Even high-end properties have sold in distressed condition. For example, Danske Bank sold the historic Knickerbocker Hotel in New York City Distressed properties are expected to add up to a considerable percentage of hotel sales in the coming months.
NYC hotels in desirable locations did best during the recession. Boutique hotels, however, suffered as they are looked on by some as frivolous choices. New York City is expected to make the swiftest recovery from the widespread economic turmoil.
The demand for accommodations is at its highest level since 2004. Demand is calculated by considering the number of rented rooms over a monthly period. Investors are buying into the city's hotel industry because they have confidence in the marketplace.
Customer's Market
This period of impressive growth in the New York City hotel industry is also favorable to the hotel guest. The corporate traveler is driving this trend but is also benefiting from the vibrant NYC market. With industry growth expected to come in between 10% and 12%, there will be no shortage of hotel rooms.
Some new hotels will be discounting initial prices to gain a market share at the beginning of their venture. Of course, even the established hotels will have to discount to match the pricing of the new hotels. Although hotel guests can expect to see higher prices in the future, they can enjoy discount prices at present for affordable and comfortable NYC hotel rooms.
If an investor is planning to purchase a NYC hotel, the occupancy rate is an encouraging sign for a perspective buyer. Yet a few investors might worry about having to offer discount prices. The slashing of rates for hotel rooms is a temporary situation.
When advance bookings increase, discounting disappears and is replaced by standard pricing. Industry specialists explain that a decline of one percentage point in room revenue results in two percentage points of net losses. This scenario occurs because of the associated fixed costs (labor, insurance, taxes) of hotels.
Some people might wonder why hotels are appearing on every corner in Manhattan. The country has been in a recession. Yet hotel development requires considerable planning in advance of development.
A hotel might have been planned in better times. By the time that the hotels are completed, a downturn can be history and recovery might be on the horizon. Today's hotels were in the planning stages in 2006 and 2007.
Update
According to data from STR, the U.S. hotel industry reported increases in all three key performance measurements during the week of August 15-August 21, 2010. New York reported a 13.2% ADR increase to US $206.73. San Francisco/San Mateo, California is the only other market to report a two-digit increase ((10.4 percent rise in ADR to US $135.02).
Conclusion
During the second half of 2010, more NYC hotels will be available for purchase. Occupancy rates will be at an all-time high and the NYC hotel industry will be favorable to buyers, sellers, and even hotel guests (although they can expect room rates to rise in the near future). It takes a 5%-6% occupancy rate to bring back pricing power. Hotel sellers will note the demand and buyers are bound to discover an excellent price.
Several distressed properties are selling at bargain rates. An investor has every chance of making a go of these businesses as the economy regains strength. Previous owners may have encountered challenges during the economic downturn.
The luxury market is also a growing market. The future of NYC real estate looks rosy for all parties and every type of hotel. As long as the demand stays steady or grows, the city's hotel industry will continue to blossom and grow in leaps and bounds. If they are not involved in the process, NYC lenders want to get into hotel lending. Almost every investment bank has billions of capital in a fund to buy hotels or invest in other related endeavors.
During 2010, New York City expects to entertain 46.7 million visitors – up 3.2% from 2009. Thousands of hotel rooms will be created throughout 2010. Investors should not let such a fantastic opportunity slip through their fingers. Buy into the NYC hotel industry!
NYC Luxury Hotels and your Best Bet in Buying for 2011
It was in 2009 that New York City occupied the numero uno status in terms of attracting the maximum number of visitors. New York City has always managed to attract visitors because of the enigma and class associated with its name. Ask 10 people, anywhere in the world, to name a top city in the world and about six or seven would take the name of the Big Apple.
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With so much popularity attributed to it, it is no wonder that NYC has some of the best and most well known hotels in the world. The tourism industry has indeed opened up worldwide and it is expected that the number of visitors to New York City will only go up. Hotels are gearing up for the rush and you can expect world class service when you are in one of the top hotels in the city.
Central Park is one of the most famous locations in NYC. Add the classy Fifth Avenue to it. Also add art and culture, endless hours of shopping, some spectacular dining and nightlife continuing till the wee hours of the morning. And in the midst of all this is The Plaza, one of the most famous and luxurious hotels in the city. Your stay at The Plaza is bound to be once in a lifetime experience.
don’t hesitate to call us for answers to all the queries you may have regarding your investment in real estate. CALL US Direct 646-403-4441
The Pierre belongs to the Taj Group of Hotels that is in turn part of the Tata Group, the most well respected Indian business entity. The service and ambience of the Pierre is consistent with what global hotel guests expect from the Taj Group. From the moment you step in, you get the treatment like Royalty would. The Pierre is located on 2 E 61st Street, close to the Capezio Dance Theatre Shop. For more information on Taj Hotels, visit the Taj Hotels website.
That the St. Regis Hotel New York is a top hotel can be attributed to the fact that it has received the Forbes Travel Guide Five-Star Award for 15 consecutive years. Located in Manhattan amid all the commerce, finance and culture, the St. Regis is close to the New York State Exchange. St. Regis is famous for its iconic butler service and out of the world customer service.
Trump SoHo New York is located in the neighborhood of Hudson Square. Although its name contains the name of the famous SoHo locality, it is actually located a few blocks away from SoHo. This 386,000 square feet property is a valuable addition to the NYC skyline. Among other things, it contains an 11,000 square feet spa. The Hudson River, the Statue of Liberty and the Manhattan can be seen from the rooms.

Located at the Columbus Circle in Manhattan, the Trump International Hotel & Tower has been created on site that had the Gulf and Western Building. It is also one of the most luxurious hotels in the city and you really need to book well in advance if you want a room.
The Mandarin Oriental New York is also located on the Columbus Circle in Manhattan, at the Time Warner Center. Started in 2003, the hotel not only offers guest rooms but also has 64 residences. It gives you a great view of the Hudson River, the Central Park and the New York skyline. It also has the only Forbes Five-Star spa in the entire Manhattan locality.
The Ritz-Carlton is part of the world famous Ritz Group of hotels. It is one of the most famous landmarks of Lower Manhattan. This hotel gives you a panoramic view of the Statue of Liberty, Ellis Island and New York Harbor. Whether you are a business or a leisure traveler and whether you are looking at business meetings or just want to wallow in luxury, this is one hotel that gives you all. It does not come for cheap but the money that you spend seems minuscule compared to what you get at this landmark hotel in NYC. Visit the hotel website here.
Ritz-Carlton Battery Park, New York
Of course, there are plenty of other hotels that the city of New York has and the hotel accommodation options are simply getting better. But looking at the large influx of traffic in the city, you are better off booking in advance.
You will be amazed when you see the names of some of the top hotels that changed hands in the past year. The hotel industry in NYC has again become very profitable and buyers are coming in droves to lay their hands on some of the finest properties in the city.
Some notable ownership changes include –
W New York – The Court & The Tuscany was bought by St. Giles Hotels, LLC in April 2010.
Helmsley Carlton House was bought by Angelo, Gordon & Company and Extell Development Company in March 2010.
The McSam Hotel Group sold four hotels to the Hersha Hospitality Trust. The four hotels are Hilton Garden Inn, TriBeCa, Holiday Inn Express, Hampton Inn and Candlewood Suites.
In recent hotel news for New York City, it is worthwhile to not that 2010 will see as many as 16 hotels either already opened or on their way. It is estimated that NYC will be able to increase its hotel accommodation capacity by as much as 12%.
Some of the notable hotels names for NYC in 2010 include Trump Soho Condo-Hotel, Staybridge Suites, Fashion 26, Hotel Eventi Dream Downtown and Wyndham Garden Nolita. Of course there are others that are on their way.
We have been in the business of hotels for more than a decade now. You can bank on us for the latest information and knowledge about the hospitality and travel industries. For a detailed information about us, please visit us by clicking here.
One of our first clients was a gentleman named Allan Truman (no relation to our former President). Mr. Truman was looking at options on buying a hotel property in New York City. He had no prior experience in the hospitality industry but had the cash to start off.
One of our sales representatives, Alexander Cross, got a whiff of his movements and approached him in his suite at the Ritz-Carlton. Mr. Truman was not very sure if he wanted to deal with us because we were new in this business and didn’t have a client base to speak of. After a couple of meetings, however, he decided to go ahead and hire us.
This decision triggered off a fantastic partnership. We not only helped Mr. Truman buy a decent property but also helped him with the best financial options. We set him up with one of the banks (through another source of ours, of course) and got him a fantastic deal. Mr. Truman was capable of buying the property outright but our experts extolled the value of financing and he went ahead with our proposal. The hotel was bought and revamped and our team of experts also helped him set up the new management to run the hotel. We also used our contacts in the market to brand his new baby and the guests started coming in soon.
Mr. Truman is not the only example that we have. In more than 10 years, we have services numerous such clients and our name in the market is carried by scores of hoteliers who trust us with everything related to their trade. Whether it is buying, selling, financing, hiring or hotel management – we are the ones you need to come to.
We have been providing customized services for our client’s needs since our inception. Therefore, don’t hesitate to call us for answers to all the queries you may have regarding your investment in real estate. CALL US Direct 646-403-4441
Hotel rates in NYC
During last year the hotel rates in NYC saw a period of real low when it was termed as the greatest depression since the 1930s. Now that the economy has recovered and started towards the positive, hotel rates in New York City have started surging upwards. New York City has always been volatile in terms of property rates and the hotel rates are no exception to this rule. If you are thinking of acquiring a hotel in the city then this is time to invest before the rates touch the sky.
The good news for hotel owners is that the city is expecting a 12 percent hike in the hotel capacity. More and more visitors are expected to throng the Big Apple and they are going to find it a pleasant surprise having more rooms to choose from and at great rates. As the hotels try and recover from the losses they sustained during the recession, they will now try to woo in their customers with some very beneficial gains.
We here at hotelnewsresource.com (http://www.hotelnewsresource.com) are all set to provide you with the support you may need when it comes to sale or purchase of NYC hotels.
Hotels recently sold in NYC
| W New York – The Court & The Tuscany changed hands as recently as April of this year. The hotels were bought by St. Giles Hotels LLC from the previous owners Starwood Hotels & Resorts Worldwide. Located on 120 East 39th Street, W New York – The Court & The Tuscany fetched a total price of $78,000,000, an average of $244,000 per room. |
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Helmsley Carlton House, located on 680 Madison Avenue, also changed hands from Helmsley Hotels to Angelo, Gordon & Company and Extell Development Company. The exchange price was $170,000,000, a whopping $1,063,000 per room. The reason for this could be attributed to the fact that Madison Avenue is home to some of the most famous advertising firms in the country and is also known for its upscale shopping boutiques. Some of the famous names adorning this place include Bulgari, Baccarat, Asprey, Bally, Brooks Brothers and Blue Tree.
| The McSam Hotel Group has gone into a selling spree and since August 2009, has sold four of their properties. All the four hotels have been bought by the Hersha Hospitality Trust. The four properties that were sold include –
Hilton Garden Inn, TriBeCa (http://hiltongardeninn.hilton.com/en/gi/hotels/index.jhtml?ctyhocn=NYCTRGI&ctyhocn=NYCTRGI) on 6 York Street. Holiday Inn Express Times Square South on 343 West 39th Street. Hampton Inn Times Square South on 337 West 39th Street.
Candlewood Suites Times Square South (http://www.hershahotels.com/new-york/new-york-city-ny0016-home.aspx ) on 339 West 39th Street. |
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The total price paid for the four hotels was $227,000,000 at an average of about $320,000 per room. Of course, the fact that the Times Square is home to the
Broadway and is probably the most famous area in NYC has helped clinch such a great deal for the McSam Hotel Group.
The market for new hotels in NYC
Where do we fit in?
Mr. Jonathan Hopkins was recently in the Big Apple, looking for a hotel to buy. Mr. Hopkins had made it big in the speculations market and now wanted something to invest in. His father was the owner of a small motel near Cleveland, OH and that is where Hopkins junior grew up. He was always fascinated with the idea of running a hotel of his own and what better place than New York to start? He approached us with his investment plan.
Our team of experts sat down with Mr. Hopkins and took all the relevant details from him. We wanted to know the amount of his investment. Based on what he told us, we could plainly see that he had enough money on him to buy luxury hotels, one of the Sheraton hotels for instance. On his part, Mr. Hopkins was not choosy at all. He just wanted to start off. It didn’t matter whether he got a no flag hotel, 2, 3, 4 or 5 star hotel, a choice hotel or even a condo hotel. A motel he was not too keen on.
Based on our conversation with him and simultaneous exploration and research of the New York City hotels up for sale, we suggested one that was located in Manhattan. We told Mr. Hopkins that Manhattan is an excellent choice because of the history attached to the place and the huge population, both local and tourist, in the area. We took along Mr. Hopkins to see the property and he liked it immediately.
We suggested that he get the hotel financed because of the benefits in the long run. We arranged a financer and helped close the deal. We also helped Mr. Hopkins with the hiring of some additional staff members and helped him with the startup program of the new management. Mr. Hopkins has started off well and he has promised to get in touch with us when he is in the mood for buying some additional properties or if he feels like selling off this one.
Now, if you have one such vision we would advise you to contact us at the earliest so that we can locate the best property, residential or commercial, in NYC.
Call us Direct at 646-403-4441 "Strictly Confidential"
We have Hotels in Midtown - Chelsea - Battery Park - UES - and More
With new Hotels just finishing constructions, new conversions, the Hotels that are in Distress, are for sale, either by the owners or the Bank Note Holders...
We’ll assist by offering Discreet dealing with Buyers and Sellers of Off The Market Hotels...
With rising hotel room rates, investing in this niche has started to become the priority investment for wide class of investors. Right on the mark, is New York City, whose sky-high luxury hotels are strongly in top demand.
We have Hotels in Midtown - Chelsea - Battery Park - UES - and More
After a long day of touring Staten Island or Greenwich Village, admiring the view from the Statue of Liberty or hiking in Central Park, Hotels For Sale in NYC recommends some hotels that will make your stay enjoyable and memorable.
If you're up for the ritzy hotel experience, here are a three famous New York hotels: The St. Regis, Algonquin and the Plaza Hotel.
The St. Regis has two locations in downtown New York - 2 E. 55th St. and 170 Central Park South.
These hotels illustrate the grandeur of New York in its earlier days. In 1904, John Jacob Astor built the St. Regis so it would reflect the luxurious European hotels.
The hotel is exquisite, from its antique furniture, crystal chandeliers, silk wall coverings to its marble floors. St. Regis combines the best of both worlds - the traditional features, such as French doors, four-poster beds, and decorative fireplaces - and the modern touches - plasma televisions and LCD screens in the bathrooms. The hotel has a fitness centre and a spa. Relax at the world-renowned King Cole Bar where the Bloody Mary originated and home to Maxfield Parrish's famous Old King Cole Mural. If these features don't make you feel like royalty, perhaps the 24-hour service personal tuxedoed butler will. Babysitting and valet services are also available.
Algonquin Hotel is another one of New York's famous hotels. Located at 59 West 44th Street, you'll learn why Historic Traveler Magazine has named the Algonquin one of the top 10 Best Historic Hotels in America.
The deluxe, historic landmark hotel underwent a multi-million dollar historical restoration in May 1998. Every item, down to the original marble stairs to the beautifully detailed ironwork dating from 1902, has been preserved.
The Plaza Hotel is considered a New York legend. Located at 5th Avenue and Central Park South, the Plaza is known for its classic French architecture. Notable guests who have stayed at one of the Plaza's 805 rooms are architect Frank Lloyd Wright and author F. Scott Fitzgerald.
Choose one of The Plaza's four in house restaurants to dine. Take time to view the Plaza's Art Gallery or venture into the first class boutiques as Roxanne Jewelers, Neuchatel Chocolates, Oscar Blandi Salon, Maurice, Bellisima, Napoleon Men's Shop, and the Plaza Spa. Need a quick trim before dashing off to see the latest Broadway show? Stop by the on site barber shop and grab a bouquet of flowers for your sweetheart at the nearby florist.
The Plaza has also been the set of some of the most classic movies: By Right Of Purchase, No Limit, Breakfast at Tiffany's, The Way We Were, North By Northwest, and Annie.
If the St. Regis, Algonquin and Plaza Hotel are a bit rich for your blood, Hotels For Sale in NYC suggests the Holiday Inn Downtown or the Howard Johnson Express Inn New York City.
Located at 1388 Lafayette, the Holiday Inn Downtown Hotel is within walking distance of Canal Street, Greenwich Village, Chinatown, Little Italy, Greenwich Village, Federal Plaza, Guggenheim Museum, and the New Museum of Contemporary Art.
Guest rooms include:
* a radio/CD player
* marble bathrooms
* coffee maker
* hair dryer
* cordless speakerphones with voicemail conference capabilities
* complimentary wireless Internet access.
Howard Johnson Express Inn New York City is located at 135 E. Houston Street. Hotels For Sale in NYC can take you to nearby attractions, such as the Statue of Liberty or SoHo.
Each room offers:
* complimentary continental breakfast
* free local calls
* two 2-line phones with data ports and voice mail
* hairdryers
* iron & ironing boards
AAA and AARP discounts are available.
Budget Hotels
For guests who want to explore the Big Apple like a true New Yorker, Hotels For Sale in Manhattan suggests staying at the Gershwin Hotel, where everything is within walking distance. In the historic Flatiron district, the Gershwin Hotel is close to the Empire State Building, Times Square, Madison Square Garden, Greenwich Village, SoHo, Little Italy and Central Park.
Trivia
* The Gershwin is located in a 100-year-old building.
* The walls have a signed original Andy Warhol Cambell's soup can.
* The Living Room Club features live music, stand-up comedy and theatre throughout the week.
* On the first floor, an art gallery features upcoming and established artists.
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