Hotels For Sale in NYC - OFF MARKET Hotel Properties For Sale in New York - Hotel Development NYC

Recently, investors have expressed tremendous enthusiasm about the NYC hotel market. As occupancy rates drop and room rates increase, buyers are interested in Manhattan hotels.

Palace Hotel

One recent sale involved the famous Palace Hotel on Madison Avenue. On May 19, the Wall Street Journal reported that a deal was reached to sell this Manhattan hotel for $400 million ($445,000 per room). The property is under contract to be bought by Northwood Investors, a real-estate investment advisory firm founded by John Z. Kukral, the former chief executive of Blackstone Real Estate Advisors.

According to Leslie Lefkowitz, the upscale hotel's director of communications, the sale is expected to close in mid-July. The seller, an affiliate of the Brunei Investment Agency, bought the 899-room hotel in 1993.

Lower East Side Hotel

Brack Capital Real Estate and InterContinental Hotels Group (IHG), a joint venture, have bought 180 Orchard St. for almost $46 million. The buyers plan to turn the halted development project into a 290-room hostelry including retail space and parking.

The property will be a Hotel Indigo - a boutique brand and part of IHG inventory including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, as well as Holiday Inn Hotels & Resorts. The planned opening is set for 2013.

The hotel will feature amenities such as a restaurant, bar, state-of-the-art fitness center, and outdoor pool. The Hotel Indigo on Orchard Street will offer outstanding accommodations with high ceilings and upper level guest rooms offering unsurpassed views of New York City. Of course, the décor is bound to reflect the signature Hotel Indigo standard. The hotel will feature luxurious guestrooms with oversized beds and hard-surface flooring, spa-inspired showers with Aveda products, and free wired or wireless high-speed internet access.

The property is a prime development site. This project should benefit neighborhood residents and add general value to the area. The Orchard Street hotel is one of two development projects by Amsterdam-based Brack. This company is also involved in a boutique property on Times Square.

Brack

Brack has developed over 3,000,000 square feet of office, hotel, and retail space as well as 3,000 residential properties across the globe. Brack's New York portfolio include the James New York Hotel (27 Grand St.), Greystone Hotel (212 W. 91st St.), Olcott (27 W. 72nd St.), Element (555 W. 59th St.), and Hilton Garden Inn (63 W. 35th St.) as well as 15 Union Square West and 90 West St.

IHG

InterContinental Hotels Group (IHG), one of the hospitality sector's most respected companies, handles well-known hotel brands such as InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn Hotels & Resorts, Holiday Inn Express and Staybridge Suites, as well as Candlewood Suites. IHG continues to target markets around the globe. Indeed, IHG is the world's largest hotel group by number of rooms. IHG franchises, leases, manage or owns, through several subsidiaries, more than 4,400 hotels (over 645,000 rooms) in 100 countries and territories.

290-room hotel set for Lower East Side

Image courtesy of newyorkwelcome.net

Recently, investors have expressed tremendous enthusiasm about the NYC hotel market. As occupancy rates drop and room rates increase, buyers are interested in Manhattan hotels.

Palace Hotel

One recent sale involved the famous Palace Hotel on Madison Avenue. On May 19, the Wall Street Journal reported that a deal was reached to sell this Manhattan hotel for $400 million ($445,000 per room). The property is under contract to be bought by Northwood Investors, a real-estate investment advisory firm founded by John Z. Kukral, the former chief executive of Blackstone Real Estate Advisors.

According to Leslie Lefkowitz, the upscale hotel's director of communications, the sale is expected to close in mid-July. The seller, an affiliate of the Brunei Investment Agency, bought the 899-room hotel in 1993.

Lower East Side Hotel

Brack Capital Real Estate and InterContinental Hotels Group (IHG), a joint venture, have bought 180 Orchard St. for almost $46 million. The buyers plan to turn the halted development project into a 290-room hostelry including retail space and parking.

The property will be a Hotel Indigo - a boutique brand and part of IHG inventory including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, as well as Holiday Inn Hotels & Resorts. The planned opening is set for 2013.

The hotel will feature amenities such as a restaurant, bar, state-of-the-art fitness center, and outdoor pool. The Hotel Indigo on Orchard Street will offer outstanding accommodations with high ceilings and upper level guest rooms offering unsurpassed views of New York City. Of course, the décor is bound to reflect the signature Hotel Indigo standard. The hotel will feature luxurious guestrooms with oversized beds and hard-surface flooring, spa-inspired showers with Aveda products, and free wired or wireless high-speed internet access.

The property is a prime development site. This project should benefit neighborhood residents and add general value to the area. The Orchard Street hotel is one of two development projects by Amsterdam-based Brack. This company is also involved in a boutique property on Times Square.

Brack

Brack has developed over 3,000,000 square feet of office, hotel, and retail space as well as 3,000 residential properties across the globe. Brack's New York portfolio include the James New York Hotel (27 Grand St.), Greystone Hotel (212 W. 91st St.), Olcott (27 W. 72nd St.), Element (555 W. 59th St.), and Hilton Garden Inn (63 W. 35th St.) as well as 15 Union Square West and 90 West St.

IHG

InterContinental Hotels Group (IHG), one of the hospitality sector's most respected companies, handles well-known hotel brands such as InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn Hotels & Resorts, Holiday Inn Express and Staybridge Suites, as well as Candlewood Suites. IHG continues to target markets around the globe. Indeed, IHG is the world's largest hotel group by number of rooms. IHG franchises, leases, manage or owns, through several subsidiaries, more than 4,400 hotels (over 645,000 rooms) in 100 countries and territories.

290-room hotel set for Lower East Side

Image courtesy of newyorkwelcome.net

Recently, investors have expressed tremendous enthusiasm about the NYC hotel market. As occupancy rates drop and room rates increase, buyers are interested in Manhattan hotels.

Palace Hotel

One recent sale involved the famous Palace Hotel on Madison Avenue. On May 19, the Wall Street Journal reported that a deal was reached to sell this Manhattan hotel for $400 million ($445,000 per room). The property is under contract to be bought by Northwood Investors, a real-estate investment advisory firm founded by John Z. Kukral, the former chief executive of Blackstone Real Estate Advisors.

According to Leslie Lefkowitz, the upscale hotel's director of communications, the sale is expected to close in mid-July. The seller, an affiliate of the Brunei Investment Agency, bought the 899-room hotel in 1993.

Lower East Side Hotel

Brack Capital Real Estate and InterContinental Hotels Group (IHG), a joint venture, have bought 180 Orchard St. for almost $46 million. The buyers plan to turn the halted development project into a 290-room hostelry including retail space and parking.

The property will be a Hotel Indigo - a boutique brand and part of IHG inventory including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, as well as Holiday Inn Hotels & Resorts. The planned opening is set for 2013.

The hotel will feature amenities such as a restaurant, bar, state-of-the-art fitness center, and outdoor pool. The Hotel Indigo on Orchard Street will offer outstanding accommodations with high ceilings and upper level guest rooms offering unsurpassed views of New York City. Of course, the décor is bound to reflect the signature Hotel Indigo standard. The hotel will feature luxurious guestrooms with oversized beds and hard-surface flooring, spa-inspired showers with Aveda products, and free wired or wireless high-speed internet access.

The property is a prime development site. This project should benefit neighborhood residents and add general value to the area. The Orchard Street hotel is one of two development projects by Amsterdam-based Brack. This company is also involved in a boutique property on Times Square.

Brack

Brack has developed over 3,000,000 square feet of office, hotel, and retail space as well as 3,000 residential properties across the globe. Brack's New York portfolio include the James New York Hotel (27 Grand St.), Greystone Hotel (212 W. 91st St.), Olcott (27 W. 72nd St.), Element (555 W. 59th St.), and Hilton Garden Inn (63 W. 35th St.) as well as 15 Union Square West and 90 West St.

IHG

InterContinental Hotels Group (IHG), one of the hospitality sector's most respected companies, handles well-known hotel brands such as InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn Hotels & Resorts, Holiday Inn Express and Staybridge Suites, as well as Candlewood Suites. IHG continues to target markets around the globe. Indeed, IHG is the world's largest hotel group by number of rooms. IHG franchises, leases, manage or owns, through several subsidiaries, more than 4,400 hotels (over 645,000 rooms) in 100 countries and territories.

290-room hotel set for Lower East Side

Investors are willing to pay record prices for NYC hotels. Of course, the economy is recovering – although not at a quick pace. Yet economic improvements are occurring at a slow and consistent rate.

According to research firm Real Capital Analytics Inc., hotel prices rose to almost $185,000 per room during the first quarter of 2011. Five years ago, values were at a peak - $153,000 a room – but dropped 37% in 2008. Current record prices being paid by investors for U.S. hotels, however, might be outpacing gains in room rates and stays.

Increased Transactions

No doubt, this year's price increases are due to the rise in upscale hotel transactions as well as other purchases by real estate investment trusts (REITs) - especially in urban centers. At present, occupancy and room rates continue to climb – although the gains do not match the current prices for several full-service hotels.

Improved Fundamentals

Fundamentals are showing improvement. On the average, asset prices have affected fundamentals. Yet the current economy is not in 'peak' mode but the market is doing well under the present economic circumstances. Industry experts would prefer, however, a quicker pace of economic recovery.

New York City Hotel Prices

During September 2010, The Hilton Garden Inn Chelsea in New York City sold for $68.4 million. Three years earlier, this hotel had been listed at $55 million. The 2010 purchase price was 24% higher than in 2007.

In fact, values have even risen in smaller markets outside key centers. At the recent New York International Hospitality Industry Investment Conference, Barry Sternlicht, founder of real estate investor Starwood Property Trust Inc., explained, "Pricing is pretty aggressive. Even for generic hotels you get 20, 30 bids.”

In April 2011, FelCor Lodging Trust Inc. agreed to buy the NYC boutique hotels – Morgans and Royalton - from Morgans Hotel Group Co. for $140 million (almost $500,000 per room). Texas-based FelCor looks for hotels that "purchased at a substantial discount to replacement cost, will earn a 10 percent cash yield within a short time."

Real Statistics

According to Real Capital, daily room rates averaged $94.05 during 2010. Revenue per available room (RevPAR) was $42.40 – below the 2008 peak of $106.65 and $54.42. RevPAR is an industry measure of occupancy and rate.

Rising Sales

Towards the beginning of 2011, Jones Lang LaSalle Inc.’s hotel investment-services unit predicted that hotel sales could increase up to 25% this year. Due to the extraordinary demand from REITs (over $1.6 billion in hotels bought in first quarter), values have risen these past few months. The recent REIT statistics reflect 44% of trades and five times the total of REIT purchases during 2007 – a peak year for hotel investment.

REITs

REITs have their sights on full-service properties in urban centers. This week, Pebblebrook Hotel Trust agreed to buy stakes in six New York boutique hotels for $152 million. Pebblebrook is proceeding with this arrangement as part of a joint venture with Denihan Hospitality Group.

Occupancy Rates

Within the top 25 U.S. markets, occupancies rose to 63% in the first 2011 quarter. According to Smith Travel Research Inc., occupancies came in at 60% during 2010. Stays at expensive hotels have increased to 67% - up 4% from last year.

Replacement Costs

In a few instances, hotel values are higher than replacement costs. The high values might indicate more new hotels in the near future. In New York City, hotels trade regularly at $200,000 a room over the cost of replacement. Hotel demand is tied to the general state of the economy.

Potential Growth

Many hotel buyers believe that high prices are warranted if there is potential for future growth. As well, investors tend to be pleased with prices if lower than the cost required to build the property at that location.

Hotel Investors Inflate Property Prices Past Demand for Lodging

Image courtesy of blog.ratesttogo.com

Investors are willing to pay record prices for NYC hotels. Of course, the economy is recovering – although not at a quick pace. Yet economic improvements are occurring at a slow and consistent rate.

According to research firm Real Capital Analytics Inc., hotel prices rose to almost $185,000 per room during the first quarter of 2011. Five years ago, values were at a peak - $153,000 a room – but dropped 37% in 2008. Current record prices being paid by investors for U.S. hotels, however, might be outpacing gains in room rates and stays.

Increased Transactions

No doubt, this year's price increases are due to the rise in upscale hotel transactions as well as other purchases by real estate investment trusts (REITs) - especially in urban centers. At present, occupancy and room rates continue to climb – although the gains do not match the current prices for several full-service hotels.

Improved Fundamentals

Fundamentals are showing improvement. On the average, asset prices have affected fundamentals. Yet the current economy is not in 'peak' mode but the market is doing well under the present economic circumstances. Industry experts would prefer, however, a quicker pace of economic recovery.

New York City Hotel Prices

During September 2010, The Hilton Garden Inn Chelsea in New York City sold for $68.4 million. Three years earlier, this hotel had been listed at $55 million. The 2010 purchase price was 24% higher than in 2007.

In fact, values have even risen in smaller markets outside key centers. At the recent New York International Hospitality Industry Investment Conference, Barry Sternlicht, founder of real estate investor Starwood Property Trust Inc., explained, "Pricing is pretty aggressive. Even for generic hotels you get 20, 30 bids.”

In April 2011, FelCor Lodging Trust Inc. agreed to buy the NYC boutique hotels – Morgans and Royalton - from Morgans Hotel Group Co. for $140 million (almost $500,000 per room). Texas-based FelCor looks for hotels that "purchased at a substantial discount to replacement cost, will earn a 10 percent cash yield within a short time."

Real Statistics

According to Real Capital, daily room rates averaged $94.05 during 2010. Revenue per available room (RevPAR) was $42.40 – below the 2008 peak of $106.65 and $54.42. RevPAR is an industry measure of occupancy and rate.

Rising Sales

Towards the beginning of 2011, Jones Lang LaSalle Inc.’s hotel investment-services unit predicted that hotel sales could increase up to 25% this year. Due to the extraordinary demand from REITs (over $1.6 billion in hotels bought in first quarter), values have risen these past few months. The recent REIT statistics reflect 44% of trades and five times the total of REIT purchases during 2007 – a peak year for hotel investment.

REITs

REITs have their sights on full-service properties in urban centers. This week, Pebblebrook Hotel Trust agreed to buy stakes in six New York boutique hotels for $152 million. Pebblebrook is proceeding with this arrangement as part of a joint venture with Denihan Hospitality Group.

Occupancy Rates

Within the top 25 U.S. markets, occupancies rose to 63% in the first 2011 quarter. According to Smith Travel Research Inc., occupancies came in at 60% during 2010. Stays at expensive hotels have increased to 67% - up 4% from last year.

Replacement Costs

In a few instances, hotel values are higher than replacement costs. The high values might indicate more new hotels in the near future. In New York City, hotels trade regularly at $200,000 a room over the cost of replacement. Hotel demand is tied to the general state of the economy.

Potential Growth

Many hotel buyers believe that high prices are warranted if there is potential for future growth. As well, investors tend to be pleased with prices if lower than the cost required to build the property at that location.

Hotel Investors Inflate Property Prices Past Demand for Lodging

Image courtesy of blog.ratesttogo.com

Investors are willing to pay record prices for NYC hotels. Of course, the economy is recovering – although not at a quick pace. Yet economic improvements are occurring at a slow and consistent rate.

According to research firm Real Capital Analytics Inc., hotel prices rose to almost $185,000 per room during the first quarter of 2011. Five years ago, values were at a peak - $153,000 a room – but dropped 37% in 2008. Current record prices being paid by investors for U.S. hotels, however, might be outpacing gains in room rates and stays.

Increased Transactions

No doubt, this year's price increases are due to the rise in upscale hotel transactions as well as other purchases by real estate investment trusts (REITs) - especially in urban centers. At present, occupancy and room rates continue to climb – although the gains do not match the current prices for several full-service hotels.

Improved Fundamentals

Fundamentals are showing improvement. On the average, asset prices have affected fundamentals. Yet the current economy is not in 'peak' mode but the market is doing well under the present economic circumstances. Industry experts would prefer, however, a quicker pace of economic recovery.

New York City Hotel Prices

During September 2010, The Hilton Garden Inn Chelsea in New York City sold for $68.4 million. Three years earlier, this hotel had been listed at $55 million. The 2010 purchase price was 24% higher than in 2007.

In fact, values have even risen in smaller markets outside key centers. At the recent New York International Hospitality Industry Investment Conference, Barry Sternlicht, founder of real estate investor Starwood Property Trust Inc., explained, "Pricing is pretty aggressive. Even for generic hotels you get 20, 30 bids.”

In April 2011, FelCor Lodging Trust Inc. agreed to buy the NYC boutique hotels – Morgans and Royalton - from Morgans Hotel Group Co. for $140 million (almost $500,000 per room). Texas-based FelCor looks for hotels that "purchased at a substantial discount to replacement cost, will earn a 10 percent cash yield within a short time."

Real Statistics

According to Real Capital, daily room rates averaged $94.05 during 2010. Revenue per available room (RevPAR) was $42.40 – below the 2008 peak of $106.65 and $54.42. RevPAR is an industry measure of occupancy and rate.

Rising Sales

Towards the beginning of 2011, Jones Lang LaSalle Inc.’s hotel investment-services unit predicted that hotel sales could increase up to 25% this year. Due to the extraordinary demand from REITs (over $1.6 billion in hotels bought in first quarter), values have risen these past few months. The recent REIT statistics reflect 44% of trades and five times the total of REIT purchases during 2007 – a peak year for hotel investment.

REITs

REITs have their sights on full-service properties in urban centers. This week, Pebblebrook Hotel Trust agreed to buy stakes in six New York boutique hotels for $152 million. Pebblebrook is proceeding with this arrangement as part of a joint venture with Denihan Hospitality Group.

Occupancy Rates

Within the top 25 U.S. markets, occupancies rose to 63% in the first 2011 quarter. According to Smith Travel Research Inc., occupancies came in at 60% during 2010. Stays at expensive hotels have increased to 67% - up 4% from last year.

Replacement Costs

In a few instances, hotel values are higher than replacement costs. The high values might indicate more new hotels in the near future. In New York City, hotels trade regularly at $200,000 a room over the cost of replacement. Hotel demand is tied to the general state of the economy.

Potential Growth

Many hotel buyers believe that high prices are warranted if there is potential for future growth. As well, investors tend to be pleased with prices if lower than the cost required to build the property at that location.

Hotel Investors Inflate Property Prices Past Demand for Lodging

Image courtesy of blog.ratesttogo.com

The Pennsylvania-based fourth-generation Korman family is planning an extended stay in New York City. This established company has built thousands of homes, apartment buildings, and commercial properties. The Kormans grew up in a Fort Washington home designed by Louis Kahn - renowned architect of the 20th century.

Major Influence

The family has been influenced by acclaimed architects. In their own right, the Kormans are making an impact on modern architects. Presently, the real estate family is doing a $100 million upgrade on four of their AKA extended-stay

brand hotels in Manhattan. The Kormans acquired these hotels between 2004 and 2007.

The AKA extended-stay brand provides unique accommodations. These Korman properties are upscale NYC hotels suited for long-term residence. The average guest stays from over three weeks to three months. Kormans ensure that they continue to experience comfort, style, and class during their stay.

Extended Style

Kormans extended-stay hotel accommodation offers subtle style - not the 'hip' atmosphere of boutique hotels. This brand does not resemble the Four Season hotels or Ian Schrager properties. Indeed, Larry Korman, partner at AKA, insists that his company is going for a completely different design than other hotels. When planning a redesign, however, Korman ensures that the plan works for the surrounding neighborhood.

AKA Sutton Place

The 76-suite AKA Sutton Place might appeal to mature guests. Its lobby features oak paneling. In fact, Korman hired Meyer Davis Studio to change the former Il Valentino restaurant into an oak-panel-accented cafe and lounge. The pink-tiled pool was repainted in a spa-like desert color. Pre-War Sutton Place has a classic and luxurious look with a fresh appeal.

AKA Central Park

Located on 58th Street, AKA Central Park, a 134-suite hotel, has a more modern décor suited to the young business person. Its redesign was overseen by HLW International in collaboration with Studio IntraMuros, AvroKO, Steven Learner, and Nicholas Cardone. The guest-only bar feels like a contemporary cigar lounge with two gas fireplaces as well as mustard and brown asymmetric furniture by Ligne Roset. A-list celebrities prefer AKA Central Park to pubic bars and clubs.

LED lights in primary colors are used to accent specific walls. On the penthouse floor, the lights between the doors can be changed to suit a guest's whim. The lobby has video artwork (depicting jellyfish ballooning and deflating) designed by Mr. Korman. The gym features a Monika Bravo six-panel video installation depicting reflections on water and creating the illusion of natural light. Patinaed stainless steel is a standard finish in this cool hotel.

AKA Times Square

In cooperation with architect Pieo Lissoni, Mr. Korman is building a two-story sky lounge on the penthouse level across from the site of the dropping of the New Year's Eve ball.

Extended Stay Brand

Since Manhattan is a strong market, all hotel categories can thrive in this area including extended-stay hotel brands. Of course, people must expect hotel rates in accordance with their expanded services and spacious accommodations.

AKA's Neighborly Upgrade

Image courtesy of hotelchatter.com

The Pennsylvania-based fourth-generation Korman family is planning an extended stay in New York City. This established company has built thousands of homes, apartment buildings, and commercial properties. The Kormans grew up in a Fort Washington home designed by Louis Kahn - renowned architect of the 20th century.

Major Influence

The family has been influenced by acclaimed architects. In their own right, the Kormans are making an impact on modern architects. Presently, the real estate family is doing a $100 million upgrade on four of their AKA extended-stay

brand hotels in Manhattan. The Kormans acquired these hotels between 2004 and 2007.

The AKA extended-stay brand provides unique accommodations. These Korman properties are upscale NYC hotels suited for long-term residence. The average guest stays from over three weeks to three months. Kormans ensure that they continue to experience comfort, style, and class during their stay.

Extended Style

Kormans extended-stay hotel accommodation offers subtle style - not the 'hip' atmosphere of boutique hotels. This brand does not resemble the Four Season hotels or Ian Schrager properties. Indeed, Larry Korman, partner at AKA, insists that his company is going for a completely different design than other hotels. When planning a redesign, however, Korman ensures that the plan works for the surrounding neighborhood.

AKA Sutton Place

The 76-suite AKA Sutton Place might appeal to mature guests. Its lobby features oak paneling. In fact, Korman hired Meyer Davis Studio to change the former Il Valentino restaurant into an oak-panel-accented cafe and lounge. The pink-tiled pool was repainted in a spa-like desert color. Pre-War Sutton Place has a classic and luxurious look with a fresh appeal.

AKA Central Park

Located on 58th Street, AKA Central Park, a 134-suite hotel, has a more modern décor suited to the young business person. Its redesign was overseen by HLW International in collaboration with Studio IntraMuros, AvroKO, Steven Learner, and Nicholas Cardone. The guest-only bar feels like a contemporary cigar lounge with two gas fireplaces as well as mustard and brown asymmetric furniture by Ligne Roset. A-list celebrities prefer AKA Central Park to pubic bars and clubs.

LED lights in primary colors are used to accent specific walls. On the penthouse floor, the lights between the doors can be changed to suit a guest's whim. The lobby has video artwork (depicting jellyfish ballooning and deflating) designed by Mr. Korman. The gym features a Monika Bravo six-panel video installation depicting reflections on water and creating the illusion of natural light. Patinaed stainless steel is a standard finish in this cool hotel.

AKA Times Square

In cooperation with architect Pieo Lissoni, Mr. Korman is building a two-story sky lounge on the penthouse level across from the site of the dropping of the New Year's Eve ball.

Extended Stay Brand

Since Manhattan is a strong market, all hotel categories can thrive in this area including extended-stay hotel brands. Of course, people must expect hotel rates in accordance with their expanded services and spacious accommodations.

AKA's Neighborly Upgrade

Image courtesy of hotelchatter.com