New York City is known as the best performing hotel market in the US. That fact should not surprise anyone. The city's strong hotel performance numbers for last year have encouraged supply increases in 2011. During the past year, 37 hotels (5,638 rooms) were added to the NYC inventory.

Active Pipeline

More hotel rooms have come on scene in the Big Apple than in any other major U.S. market. New York City has the largest active pipeline in America. According to STR/McGraw-Hill Construction Dodge, New York has 173 hotels (20,650 rooms) in the active pipeline. Apparently, no slowdown is expected any time in the near future.

Increased Supply

If all plans for 2011 come to completion, New York City will see a 4.2% rise in supply for the market. Obviously, expectations point to a continued recovery. Based on STR statistics as of April 2011, the present supply is 538 hotels (99,406 rooms).

In fact, 53 projects (6,712 rooms) are in the construction phase at this time. Visitors to New York City should be prepared to see plenty of development in this global center.

Summer Openings

Specific openings for June include aloft New York Brooklyn, The NoMad Hotel, Dream Downtown, and Holiday Inn New York Midtown, as well as Yotel New York Times Square (the largest property under development - 669 rooms). The Hyatt 48 Lex and TRYP New York City Times Square South are planned to open in July.

Unique NYC Hotel

Brack Capital has purchased 185 Bowery completing a four-property parcel between 185-191 Bowery. In addition, Brack Capital's Orchard Street Hell Building will be reborn as a Hotel Indigo. Dutch hotel chain CitizenM plans a "budget luxury" hotel at the site resting on the Bowery and Delancey Street. This unique hotel will target "mobile citizens of the world" who seek "affordable luxury for the people."

This spacious hotel (315 rooms scattered across 90,000 square feet) will offer guest rooms with wall-to-wall windows, LCD flat screens, rainshowers, and oversized beds. The innovative décor features rooms controlled by a "mood pad." In other words, this new hotel will have rooms that can change colors. The project should be completed by next year.

NYC Hotel Market

Investors are not worried about the impact of increased supply. Buyers have confidence in the established and historically-sound NYC market. Andrew Labetti, GM of The Benjamin, a 209-room Manhattan hotel, is certain that the NYC market can handle the new supply.

As well, Host Hotels president and CEO, Ed Walter, has expressed optimism about the remainder of the year in the NYC hotel industry. Host Hotels is involved heavily in construction and renovations during the first half of 2011. Yet the company expects huge returns later in the year. Host is in the midst of repositioning the Sheraton New York Hotel & Towers.

Gaining Momentum

Positive demand is evident in the NYC hotel sector. Momentum is rising and the market continues to gain strength. FelCor Lodging Trust’s executive VP and CFO, Andrew J. Welch, explains that the outlook is fine for New York City. Welch says that we are seeing seven out of ten hotel rooms sold in the city.

“…New York’s always very strong,” insists FelCor Lodging Trust’s executive VP and CFO.

NYC pipeline: Manageable growth?

Today's travellers to New York City can find sensational Cyber Monday deals. People prefer the Big Apple because of its cultural sites, historical landmarks, and recreational venues. An attractive travel deal optimizes the appeal of a visit to this spectacular global center.

Best Western

Best Western Hotels can be found throughout the greater New York City region. This hotel chain prides itself on its convenient locations near city attractions. NYC Best Western hotels include:

• BEST WESTERN Convention Center Hotel 522 W 38th Street
• BEST WESTERN PLUS Hospitality House, 145 E 49th Street
• BEST WESTERN PLUS Seaport Inn Downtown, 33 Peck Slip
• BEST WESTERN City View Inn, 3317 Greenpoint Avenue, Long Island City
• BEST WESTERN Plaza Hotel, 3934 21st Street, Long Island City
• BEST WESTERN Jamaica Inn, 8707 Van Wyck Expressway, Jamaica New York
• BEST WESTERN Kennedy Airport, 14425 153rd Ln, Jamaica New York
• BEST WESTERN PLUS Queens Court Hotel, 13351 39th Avenue, Flushing New York
• BEST WESTERN Bowery Hanbee Hotel, 231 Grand Street, New York
• BEST WESTERN PLUS President Hotel at Times Square, 234 W 48th Street

Cyber Monday Deal
Buy a $100 Best Western Travel Card here and receive a bonus $20 gift card reward. Cyber Monday shoppers can choose a $20 Best Western Travel Card or similar gift card from participating retail partners. The Best Western Travel Card can be used as cash to pay for reservations at over 4,000 Best Western hotels worldwide. BWR members can take advantage of this special offer until Monday, Nov. 28 at 11:59 p.m. MST.

Omni Hotels & Resorts

Once again, Omni Hotels & Resorts are offering their "Holiday Treat" incentive for a limited time. This fabulous plan allows travelers to get excellent deals on winter vacations. Between Black Friday and Cyber Monday, the price for Omni guest rooms will range between $79 and $119 in destinations including New York, Atlanta, Boston, Chicago, Dallas, Fort Worth, and San Francisco, as well as other popular locations. In addition, the well-known hotel brand is giving away 100 room nights to 100 followers. Check out this exciting initiative to mark the beginning of the holiday season at the Omni Hotel page on Facebook.

Starwood Hotels

Take advantage of Starwood Hotel Cyber Monday deals in New York City. Book before December 2, 2011 and save with holiday sales.

W New York - Times Square

The Westin New York at Times Square

Four Points by Sheraton Midtown - Times Square

The Manhattan at Times Square Hotel

Sheraton New York Hotel & Towers

W New York

The St. Regis New York

Four Points by Sheraton Manhattan Chelsea

W New York - Union Square

W New York - Downtown

Four Points by Sheraton Manhattan SoHo Village

Sheraton Tribeca New York Hotel

Sheraton Brooklyn New York Hotel

Aloft New York Brooklyn

Aloft Harlem

Sheraton LaGuardia East Hotel

Sheraton JFK Airport Hotel

Even more Cyber Monday hotel and travel deals

Image courtesy of omnihotels.com

The demand for hotel rooms in New York City is on the rise. Several office buildings in the Big Apple are being converted into lodging properties. The former 133,000 square-foot office building at 28th Street and Broadway has just undergone a major transformation into a chic hotel.

In 2007, this Madison Square Park area property was in poor condition. During April 2012, however, the building reopened as the 168-room Parisian-style property – the NoMad Hotel – at 1170 Broadway. The stylish conversion (with interior design by Jacques Garcia) was a group venture with the Sydell Group, Ron Burkle and Square Mile Capital. The NoMad Hotel (and a gourmet restaurant run by Daniel Humm and Will Guidara of Eleven Madison Park) should attract visitors to this rebuilt New York City neighborhood.

Around six similar renovations are on the go in the Big Apple – especially in Midtown South and the Financial District. Millions of square feet of new office space are being added through the new World Trade Center development. According to William Geiler, Highgate's executive vice president of development and acquisitions, Highgate, the Carlyle Group, and Trabuco Associates plan to change a landmark office building at 170 Broadway into a 245-room extended-stay hotel.

Recently, the New York-based GB Lodging bought 5 Beekman St. - an abandoned 19th-century building with a stunning atrium in the center of the Financial District. The company plans to convert the property into a 297-room hotel with 90 condo residences.

Bruce Blum, president and co-founder of GB Lodging, explains the reasoning, "Given the location by downtown, near the 9/11 memorial, across the street from City Hall Park, a block-and-a-half from Fulton Street metro hub, it's a transitioning neighborhood."

With their central locations and commercial zoning, older office buildings have a definite appeal for NYC hotel developers. Yet for years, investors had wondered about the best use for aging office properties. Generally, the buildings were turned into rental apartments or condos. The current trend, however, to turn offices into hotels is revitalizing areas of New York that lack vibrancy after work hours and on the weekend.

The Big Apple is alive with new hotel projects. Tourists and corporate travelers are driving rates and occupancies within the lodging sector. According to CBRE Econometric Advisors, the city added 4,100 guest rooms in 2011 to its hospitality industry. The NYC hotel sector is not expected to lose any ground in the present year.

Within the same neighborhood as NoMad, Marriott International Inc. plans to purchase the century-old Clock Tower building and begin another hotel conversion. In addition, Felcor has bought the Knickerbocker Hotel (now an office building) near Times Square with plans to bring the property back to its original style.

As well, the Refinery, a 197-room hotel (complete with rooftop bar) on 38th Street between Fifth and Sixth Avenues, should open in autumn 2012. The Aini and Vaid families (with Highgate Hotels as a consultant) will convert the former hat factory (and later, office building) into a splendid hotel.

Obviously, office conversions are not easy projects. The buildings have larger floor plates (not ideal for hotels) and institutional hotel brands prefer traditional layouts. Yet Christina Zimmer, principal in charge of hospitality architecture at Stonehill & Taylor (architect and design firm for the Refinery), gives one reason why hotel developers choose office building for conversion purposes,

"You end up with some quirky layouts. You're getting a slightly different product, rather than something cookie cutter," states Zimmer.

Despite all the hotel openings, industry experts believe that the demand for NYC guest rooms will still exceed the present supply. According to the latest projections by CBRE Econometric Advisors, the NYC hotel occupancy rate in 2012 should rise by 0.6 percentage points to 81%. The national rate, however, should remain the same at 65.9%. The average daily rate should also rise by 4.5% to $243 in 2012. Manhattan needs even more hotel rooms.

Image courtesy of hotelchatter.com

NYC Hotels Exceeding Expectations

U.S. hotel owners are seeing an increase in corporate travel while the number of leisure guests is not breaking any records. Generally, room rates and occupancy levels are on the rise. Yet not every hotelier across the country is raking in massive profits.

High-Profile Hotels

Of course, various high-profile hotel companies (Marriot, Hyatt) are showing improvement. Other hotel owners, however, have faced bankruptcy or foreclosure in recent years. New York City hotels are seen as a smart investment in an established market.

Altman Z-Score

If entrepreneurs want to determine a company's risk for bankruptcy, they can use the Altman Z-Score (a formula developed by New York University professor Edward Altman in 1968). The Altman Z-Score measures varied aspects of a company's financial health - working capital, total assets, total liabilities, market capitalization, sales, retained earnings, and earnings before interest & taxes (EBIT). This measure can predict if the company will go bankrupt within two years. According to Investopedia, the Altman Z-Score has been 72% accurate in its predictions.

Usually, companies with a Z-Score above 3 are considered safe and have little risk of bankruptcy. Businesses with a score of 1.81 or lower are seen as distressed properties in danger of bankruptcy. The middle range is a gray area.

Of course, the Altman Z-Score is not the only indication of a company's financial state. The Z-Score does not come with any guarantee. Yet potential buyers have reason to be concerned about hotels below the safety zone or properties with a year-after-year declining score.

Starwood Hotels

Starwood Hotels, a dynamic presence in the NYC hospitality industry, as well as elsewhere, stayed at a reading of 1.84 in the trailing 12 months. This measure puts Starwood Hotels within the gray area and not at risk for bankruptcy. Starwood operates hotels under several brands such as the St. Regis, W, Westin, Le Meridien, Sheraton, and Four Points.

On July 28, Starwood will release its financial results for the second quarter of 2011. Several analysts expect Starwood to announce a profit of $89.6 million (46 cents per share) on revenue of $1.41 billion. This profit would compare with last year's earnings of $114 million (61 cents per diluted share) on revenue of $1.29 billion. During April, Starwood announced that quarterly revenue exceeded expectations and increased by 9.2% to $1.3 billion. Luxury travel was behind the rise in profits.

Despite turmoil in North Africa and the Middle East and the earthquake in Japan, worldwide RevPAR (revenue per available room) rose 10.4 per cent. Within North America, the increase amounted to 11.1 per cent. RevPAR, a key metric in the hotel sector, multiplies an establishment's room rate by its occupancy rate. Within recent years, RevPAR has been lower as travelers decided against high-priced hotel rooms – even in luxury properties.

Starwood offered a better full-year profit guidance ($1.60 to $1.70 per share). Analysts had predicted these profits. Starwood CEO says that the outlook for the rest of 2011 looks promising for the company.

Wyndham Worldwide (WYNR)

With a Z-Score of 1.15, Wyndham ranked just inside the risky area. Yet Wyndham shows improvement from last year. Wyndham operates several hotel brands including Wyndham (such as Wyndham Garden Times Square South Hotel), Ramada, Days Inn, Super 8, Howard Johnson and Microtel, as well as other properties. On July 27, Wyndham will release its 2011 second-quarter results.

Industry analysts expect a profit of $95.4 million (56 cents per share) on revenue of $1.05 billion. Last year, the company's earnings came in at $95 million (51 cents per share) on revenue of $963 million. Recently, Wyndham saw a 44% increase in net earnings due to increased revenue in all business categories.

As of March 31, 2011 (the end of this year's fiscal quarter), Wyndham earned $72 million (41 cents per share). Excluding charges, its profit was 44 cents per share. This figure topped expectations by 4 cents. Revenue increased 7% to $952 million – almost $18 million shy of analysts' predictions. Wyndham's lodging showed a RevPAR rise of 7.4%.

Bankruptcy Watch: 9 Risky Hotel Stocks

Image courtesy of blog.ratestogo.com

NYC Hotels Exceeding Expectations

U.S. hotel owners are seeing an increase in corporate travel while the number of leisure guests is not breaking any records. Generally, room rates and occupancy levels are on the rise. Yet not every hotelier across the country is raking in massive profits.

High-Profile Hotels

Of course, various high-profile hotel companies (Marriot, Hyatt) are showing improvement. Other hotel owners, however, have faced bankruptcy or foreclosure in recent years. New York City hotels are seen as a smart investment in an established market.

Altman Z-Score

If entrepreneurs want to determine a company's risk for bankruptcy, they can use the Altman Z-Score (a formula developed by New York University professor Edward Altman in 1968). The Altman Z-Score measures varied aspects of a company's financial health - working capital, total assets, total liabilities, market capitalization, sales, retained earnings, and earnings before interest & taxes (EBIT). This measure can predict if the company will go bankrupt within two years. According to Investopedia, the Altman Z-Score has been 72% accurate in its predictions.

Usually, companies with a Z-Score above 3 are considered safe and have little risk of bankruptcy. Businesses with a score of 1.81 or lower are seen as distressed properties in danger of bankruptcy. The middle range is a gray area.

Of course, the Altman Z-Score is not the only indication of a company's financial state. The Z-Score does not come with any guarantee. Yet potential buyers have reason to be concerned about hotels below the safety zone or properties with a year-after-year declining score.

Starwood Hotels

Starwood Hotels, a dynamic presence in the NYC hospitality industry, as well as elsewhere, stayed at a reading of 1.84 in the trailing 12 months. This measure puts Starwood Hotels within the gray area and not at risk for bankruptcy. Starwood operates hotels under several brands such as the St. Regis, W, Westin, Le Meridien, Sheraton, and Four Points.

On July 28, Starwood will release its financial results for the second quarter of 2011. Several analysts expect Starwood to announce a profit of $89.6 million (46 cents per share) on revenue of $1.41 billion. This profit would compare with last year's earnings of $114 million (61 cents per diluted share) on revenue of $1.29 billion. During April, Starwood announced that quarterly revenue exceeded expectations and increased by 9.2% to $1.3 billion. Luxury travel was behind the rise in profits.

Despite turmoil in North Africa and the Middle East and the earthquake in Japan, worldwide RevPAR (revenue per available room) rose 10.4 per cent. Within North America, the increase amounted to 11.1 per cent. RevPAR, a key metric in the hotel sector, multiplies an establishment's room rate by its occupancy rate. Within recent years, RevPAR has been lower as travelers decided against high-priced hotel rooms – even in luxury properties.

Starwood offered a better full-year profit guidance ($1.60 to $1.70 per share). Analysts had predicted these profits. Starwood CEO says that the outlook for the rest of 2011 looks promising for the company.

Wyndham Worldwide (WYNR)

With a Z-Score of 1.15, Wyndham ranked just inside the risky area. Yet Wyndham shows improvement from last year. Wyndham operates several hotel brands including Wyndham (such as Wyndham Garden Times Square South Hotel), Ramada, Days Inn, Super 8, Howard Johnson and Microtel, as well as other properties. On July 27, Wyndham will release its 2011 second-quarter results.

Industry analysts expect a profit of $95.4 million (56 cents per share) on revenue of $1.05 billion. Last year, the company's earnings came in at $95 million (51 cents per share) on revenue of $963 million. Recently, Wyndham saw a 44% increase in net earnings due to increased revenue in all business categories.

As of March 31, 2011 (the end of this year's fiscal quarter), Wyndham earned $72 million (41 cents per share). Excluding charges, its profit was 44 cents per share. This figure topped expectations by 4 cents. Revenue increased 7% to $952 million – almost $18 million shy of analysts' predictions. Wyndham's lodging showed a RevPAR rise of 7.4%.

Bankruptcy Watch: 9 Risky Hotel Stocks

Image courtesy of blog.ratestogo.com

NYC Hotels Exceeding Expectations

U.S. hotel owners are seeing an increase in corporate travel while the number of leisure guests is not breaking any records. Generally, room rates and occupancy levels are on the rise. Yet not every hotelier across the country is raking in massive profits.

High-Profile Hotels

Of course, various high-profile hotel companies (Marriot, Hyatt) are showing improvement. Other hotel owners, however, have faced bankruptcy or foreclosure in recent years. New York City hotels are seen as a smart investment in an established market.

Altman Z-Score

If entrepreneurs want to determine a company's risk for bankruptcy, they can use the Altman Z-Score (a formula developed by New York University professor Edward Altman in 1968). The Altman Z-Score measures varied aspects of a company's financial health - working capital, total assets, total liabilities, market capitalization, sales, retained earnings, and earnings before interest & taxes (EBIT). This measure can predict if the company will go bankrupt within two years. According to Investopedia, the Altman Z-Score has been 72% accurate in its predictions.

Usually, companies with a Z-Score above 3 are considered safe and have little risk of bankruptcy. Businesses with a score of 1.81 or lower are seen as distressed properties in danger of bankruptcy. The middle range is a gray area.

Of course, the Altman Z-Score is not the only indication of a company's financial state. The Z-Score does not come with any guarantee. Yet potential buyers have reason to be concerned about hotels below the safety zone or properties with a year-after-year declining score.

Starwood Hotels

Starwood Hotels, a dynamic presence in the NYC hospitality industry, as well as elsewhere, stayed at a reading of 1.84 in the trailing 12 months. This measure puts Starwood Hotels within the gray area and not at risk for bankruptcy. Starwood operates hotels under several brands such as the St. Regis, W, Westin, Le Meridien, Sheraton, and Four Points.

On July 28, Starwood will release its financial results for the second quarter of 2011. Several analysts expect Starwood to announce a profit of $89.6 million (46 cents per share) on revenue of $1.41 billion. This profit would compare with last year's earnings of $114 million (61 cents per diluted share) on revenue of $1.29 billion. During April, Starwood announced that quarterly revenue exceeded expectations and increased by 9.2% to $1.3 billion. Luxury travel was behind the rise in profits.

Despite turmoil in North Africa and the Middle East and the earthquake in Japan, worldwide RevPAR (revenue per available room) rose 10.4 per cent. Within North America, the increase amounted to 11.1 per cent. RevPAR, a key metric in the hotel sector, multiplies an establishment's room rate by its occupancy rate. Within recent years, RevPAR has been lower as travelers decided against high-priced hotel rooms – even in luxury properties.

Starwood offered a better full-year profit guidance ($1.60 to $1.70 per share). Analysts had predicted these profits. Starwood CEO says that the outlook for the rest of 2011 looks promising for the company.

Wyndham Worldwide (WYNR)

With a Z-Score of 1.15, Wyndham ranked just inside the risky area. Yet Wyndham shows improvement from last year. Wyndham operates several hotel brands including Wyndham (such as Wyndham Garden Times Square South Hotel), Ramada, Days Inn, Super 8, Howard Johnson and Microtel, as well as other properties. On July 27, Wyndham will release its 2011 second-quarter results.

Industry analysts expect a profit of $95.4 million (56 cents per share) on revenue of $1.05 billion. Last year, the company's earnings came in at $95 million (51 cents per share) on revenue of $963 million. Recently, Wyndham saw a 44% increase in net earnings due to increased revenue in all business categories.

As of March 31, 2011 (the end of this year's fiscal quarter), Wyndham earned $72 million (41 cents per share). Excluding charges, its profit was 44 cents per share. This figure topped expectations by 4 cents. Revenue increased 7% to $952 million – almost $18 million shy of analysts' predictions. Wyndham's lodging showed a RevPAR rise of 7.4%.

Bankruptcy Watch: 9 Risky Hotel Stocks

Image courtesy of blog.ratestogo.com

Investors recognize that New York City is an established and historically-sound market. As a world center with an unmistakable draw for tourists and business people, NYC lodging opportunities are popular with investors. The market in the Big Apple has the ability to survive economic downturns.

Unique NYC Market

Other regions might not garner the strength to recover from economic turmoil. Yet the NYC hotel market is a unique sector – an industry capable of resisting national trends. New York City can carve its own path to success.

Success Story

One example of survival and achievement in the NYC market involves the Wyndham Garden Hotel-Times Square South. This 223-room New York City hotel opened in November 2008. Hotel fundamentals fell out of sight at the same time.

According to STR, NYC occupancy dropped 11.7% and RevPAR fell 21.5% in the hotel's first month of operation. As well, corporate travel fell drastically during this period. Led by GM Frank C. Nicholas, however, Wyndham Garden survived because the operation evolved and adapted to the market.

	10 Reasons Why NYC Hotels Appeal to Investors New York City can support countless hotels in several categories - from budget to luxury properties. New York City is an expansive metropolis with the largest population in New York State. The Big Apple is the business center of the US. NYC industrial and business growth exceed expectations on a consistent basis. Further economic development is expected within New York City in the future. As the hub of industrial and business activities, this global center will continue to attract visitors. NYC attractions draw millions of tourists on an annual basis. The demand for hotels continues to grow in New York City. Investing in NYC hotels is not a risky move. New York City is an established, historically-sound market.
New Summer Market Report	TOP Hotel Brokers of NYC Reports on Revitalized Spring - Summer NYC Hotel Market

With the loss of corporate business, the hotel pursued international accounts and tourism wholesalers. By the end of 2010, the property reported a 10% increase in revenue per available room (RevPAR). Despite the challenges along the way, Wyndham Garden is performing nicely during 2011.

The hotel has re-established itself and taken full advantage of the present recovery in the NYC hotel industry. The Wyndham got its bearings – and just in time. At least 10 new properties are planned within a 15-block radius of the hotel. Of course, the lodging industry in this thriving metropolis can handle several hotels in various categories from luxury to budget properties.

Strong NYC Market

The strength of the 2010 NYC market was quite appealing to investors. Last year, the New York City hotel market experienced a 9.1% rise in RevPAR. STR states that this increase was driven by a surge of 9.9% in occupancy. Obviously, these strong performance metrics were noticed by local, national, and international investors.

With the improved market, transactions and developments came on scene at record levels. As of June 11, HVS data and STR Analytics report 11 hotel transactions. According to STR/McGraw-Hill Construction/ Dodge, the New York pipeline has 5,879 rooms (as of May 11) under construction. During the past year, the market added 4,864 rooms.

Enthusiastic Investors

The NYC market is a market like no other. Investors' enthusiasm never dwindles for this dynamic marketplace. Recently, Starwood Hotels & Resorts Worldwide confirmed that all nine of its brands will soon be represented in the market. Starwood chief Frits van Paasschen summed up the reason for their interest in NYC hotels.

"New York is an exception to most of the rest of the North American market. We’ve added six new-build hotels to the New York market in the last year and a half and the performance has been much stronger than you would guess,” says Starwood chief Frits van Paasschen.

Several hotel companies are showing their confidence in the New York City hotel industry. Investors understand what growth can mean in a booming market like the Big Apple. A big city like New York can absorb easily any surges in supply.

Brand Presence

Investors are interested in building a brand presence within New York City. Property in this world center can make an overall positive impact on a brand. In fact, Wyndham's Nicholas says that companies cannot build a brand to the ultimate level without owing a NYC property.

Growing Market

This diverse and dynamic global city is the chosen destination of millions of travelers from inside and outside the US. While investors should pay attention to supply, several knowledgeable sources have expressed confidence in the future NYC hotel market. Supply is bound to be absorbed by demand. New York City will continue to grow and attract national and international travelers.

NYC Hotel Investment

Latest:

NOT BUYING

Mr. Hilfiger's $170 million plan to purchase the Madison Square landmark and convert it a hotel is called off after he fails to secure financing. Seller Africa Israel left in lurch again.

Fashion designer Tommy Hilfiger has called off plans to purchase the Clock Tower, the landmarked office tower overlooking Madison Square Park. He had intended to convert it into a luxury hotel and condominium.

Marriott revealed as $165M buyer of Madison Square clocktower

October 26, 2011 08:30AM

Ian Schrager appears to be returning to the clock tower at 5 Madison Avenue.

According to Real Estate Weekly, Marriott International purchased the 220,000-square-foot office tower overlooking Madison Square Park from Africa Israel and plans to turn it into an Edition Hotel, the boutique hotel line it launched with hotelier Ian Schrager. Africa Israel was previously reported to have sold the tower for $165 million, but the buyer was only identified as "a credit-worthy" one.

Though Marriott typically does not own its real estate, the hotel operator wants to buy property for its struggling Edition line, which it hopes will compete with Starwood's W Hotel brand, to help get it off the ground. Marriott had planned to open 100 such hotels within ten years of the 2007 launch, according to the Wall Street Journal, but just two have opened thus far and one, in Hawaii, dropped the Edition moniker. Marriott has $400 million plans to open Editions in Miami Beach and London.

But both the Journal and Real Estate Weekly note that there will be challenges to building a successful hotel in the clock tower. A hotel conversion could reduce the amount of usable square feet to 150,000, Real Estate Weekly said, while the Journal noted that there was limited space for the lobby, restaurant and other amenities.

Schrager had partnered with Aby Rosen to buy a controlling stake in the building from SL Green, but turned around and sold it to Africa Israel in 2007 for $200 million. Africa Israel was near a deal with Tommy Hilfiger for the building, but the designer backed out. [WSJ] and [REW]

Earlier

Not everything is on time at the MetLife Clock Tower (Metropolitan Life Tower) – at least not concerning its proposed sale. Designed by architect Napoleon LeBrun and modeled after St. Mark’s Campanile in Venice, this landmark NYC property was expected to get a new look. With the help of Tommy Hilfiger, famous designer, JSR Capital, and a $170 million price tag, the 5 Madison Avenue building was supposed to change from clock tower to a luxury hotel and condominium.

Clock Tower Conversion

The conversion would address the current boutique hotel craze and attract a youthful, affluent crowd. Yet Hilfiger's plan to convert the MetLife Clock Tower into his first hotel seems to have hit a snag. According to inside sources, the popular designer is having problems closing the deal.

Property Investors

Just a few weeks ago, Hilfiger and JSR Capital signed the contract to acquire the century-old property near Madison Square Park. The seller, developer Africa Israel USA, and Hilfiger seem to have run into a few issues. In fact, Africa Israel is reported to be talking with other real estate investors about the clock tower property.

An Africa Israel spokeswoman clarified the situation, "Africa Israel continues to be in negotiations to sell the Clock Tower, including with the party that has signed the contract."

In 2007, Lev Leviev's Africa-Israel bought the building for $200 million. At that time, the diamond billionaire was buying up landmarks sight unseen in New York City.

Closing the Deal

Even though insiders say that Hilfiger and Africa Israel have not closed the deal, the sources have not determined the reason for the delay. It is public knowledge, however, that Africa Israel has to settle a previous agreement with fashion designer Versace. In 2008, the developer hired Versace to redesign the interiors of the Clock Tower. Originally, Africa Israel had plans to convert the tower to 55 ultra-luxury condos priced at $3,500 per square foot.

The market collapsed though and Africa Israel decided not to use Versace. Actually, Africa Israel and Versace are still negotiating the termination of that agreement. Such unresolved matters can wreak havoc with a pending sale.

Lending Concern

As well, despite the improvement in the NYC hotel industry, lenders can be wary about financing huge ventures. Lenders might be more agreeable if a veteran manager wants to turn around an existing property. The financial institutions are more cautious about funding new developments or extensive conversions.

Conversion Issues

The MetLife Clock Tower was the tallest building of its kind at the time of its construction in 1909. The office layout of this 50-storey building overlooking Madison Square Park might pose a problem for conversion. The project might be complicated and costly – even adding up to several tens of millions of dollars before completion.

Since Hilfiger has no track record for running hotels, industry executives figured that he would team with an established operator. Hilfiger is still a principal designer of his company. He sold the business, however, 14 months ago to Phillips-Van Heusen Corp for $3 billion. The parent company is not involved in the hotel project.

Hotel Brands

Reports suggest that Hilfiger always wanted to launch a hotel brand in New York City. Apparently, Hilfiger and JSR Capital (led by Jona Rechnitz, former director of acquisitions at Africa Israel) had considered other NYC properties including the Hotel Chelsea and the former New York Times building on West 43rd Street. Initially, Hilfiger and JSR Capital placed a bid of almost $110 million for eight floors in the New York Times property. Later, the team changed their minds about the bid. It is up in the air about how Hilfiger's involvement in the clock tower purchase would affect his long-time ambition about developing a hotel brand.

Hilfiger's Hotel Designs May Unravel

Other relate Article

NOT BUYING

Mr. Hilfiger's $170 million plan to purchase the Madison Square landmark and convert it a hotel is called off after he fails to secure financing. Seller Africa Israel left in lurch again.

Fashion designer Tommy Hilfiger has called off plans to purchase the Clock Tower, the landmarked office tower overlooking Madison Square Park. He had intended to convert it into a luxury hotel and condominium.

Mr. Hilfiger, along with partner JSR Capital, a real estate investment company, wanted to redevelop the 41-story spire at 5 Madison Ave. into what would have been the preppy designer's first-ever hotel project. According to published reports, the partners were in contract to buy the 267,000-square-foot property for $170 million from Africa Israel USA. Sources said the deal fell apart because the would-be buyers had trouble raising the needed funds.

JSR Capital, however, insisted that there were other reasons for walking away from the deal.

“Virtually everyone in the real estate business has looked at Clock Tower as a hotel, residential, and/or office,” said Ari Schwebel, vice president of operations at JSR Capital. “Some of those were even all-cash buyers. There are reasons not one of them has closed on the building, and it isn't about financing.”

Spokespeople for Mr. Hilfiger did not return a call seeking comment, while a spokeswoman for Africa Israel declined to comment.

Article Source: http://www.crainsnewyork.com/article/20110914/REAL_ESTATE/110919950&template=printart

The Armory Show, 'the' event of the American contemporary art world, is taking place in New York City until March 6, 2011. This amazing show is a gathering place for international galleries and passionate collectors.

The Armory, mainly at New York's Piers 92 and 94 along the West side of Manhattan facing the Hudson River, offers the 'Contemporary' displaying new works by living artists and the 'Modern' showing new and secondary pieces from modern artists.

Last year, the show attracted 60,000 visitors – half of that number came from outside New York City. One third of the group were international visitors. Highlights of the 2011 Armory Show include New York's Lehmann Maupin Gallery showing a superb exhibition of postcard art by pop art

Image courtesy of daliyfix.interiordesign.net

duo Gilbert & George. This year's show is highlighting art scenes with a Latin American focus. An invitation-only exhibition showcases galleries from Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela.

The Surrey

Although located on the other side of Manhattan from the Armory, The Surrey is the show's official VIP hotel. Of course, The Surrey is no slouch itself when it comes to impressive art. This luxury hotel has a splendid in-house collection of works by Chuck Close, Jenny Holzer, and Richard Serra.

As well, The Surrey has other connections to the art world. The hotel is the perfect base for checking out the Art Show 2011 at the Park Avenue Armory. This show sponsored by the Art Dealers Association of America also runs through until Sunday, March 6. The exhibition features traditional and modern works dating from the 19th and 20th centuries.

Ace Hotel

In addition, the Ace Hotel, another sponsor, features nightly events during the show including a new social soirree - "Original Content." The hotel's lobby and guest rooms offer a spectacular collection of works including more than 4,000 graffiti stickers in the lobby by Bronx-born artist Michael Anderson and a secret room mural by Timothy Goodman in Suite 910. The monthly event welcomes people from the media, film, music and fashion, as well art industries. DJs and special art-themed guests mingle in the hotel's Liberty Hall. Ace regulars include Ryan McGinley and Terrance Koh.

New York City Hotels

The art-conscious Surrey and Ace Hotels make a significant presence in the NYC hotel industry. The Surrey, a luxury boutique hotel, prides itself on providing one-of-a-kind service for its guests. Built in 1926 as a residence hotel, the original Surrey was home to celebrities such as JFK, Bette Davis, and Claudette Colbert. When renowned interior designer Lauren Rottet recreated the hotel, she paid attention to the hotel's history while modernizing the interiors.

The New York Times called the Ace Hotel – "the country's most original hotel." This 260-room, distinct boutique hotel is located in the heart of Midtown Manhattan and within walking distance of the Theater District, Times Square, and Macy's. Guests can easily take the Amtrak into Penn Station. The Ace Hotel is an affordable choice for visitors to New York City

Art World Descends on NYC for The Armory

The Armory Show, 'the' event of the American contemporary art world, is taking place in New York City until March 6, 2011. This amazing show is a gathering place for international galleries and passionate collectors.

The Armory, mainly at New York's Piers 92 and 94 along the West side of Manhattan facing the Hudson River, offers the 'Contemporary' displaying new works by living artists and the 'Modern' showing new and secondary pieces from modern artists.

Last year, the show attracted 60,000 visitors – half of that number came from outside New York City. One third of the group were international visitors. Highlights of the 2011 Armory Show include New York's Lehmann Maupin Gallery showing a superb exhibition of postcard art by pop art

Image courtesy of daliyfix.interiordesign.net

duo Gilbert & George. This year's show is highlighting art scenes with a Latin American focus. An invitation-only exhibition showcases galleries from Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela.

The Surrey

Although located on the other side of Manhattan from the Armory, The Surrey is the show's official VIP hotel. Of course, The Surrey is no slouch itself when it comes to impressive art. This luxury hotel has a splendid in-house collection of works by Chuck Close, Jenny Holzer, and Richard Serra.

As well, The Surrey has other connections to the art world. The hotel is the perfect base for checking out the Art Show 2011 at the Park Avenue Armory. This show sponsored by the Art Dealers Association of America also runs through until Sunday, March 6. The exhibition features traditional and modern works dating from the 19th and 20th centuries.

Ace Hotel

In addition, the Ace Hotel, another sponsor, features nightly events during the show including a new social soirree - "Original Content." The hotel's lobby and guest rooms offer a spectacular collection of works including more than 4,000 graffiti stickers in the lobby by Bronx-born artist Michael Anderson and a secret room mural by Timothy Goodman in Suite 910. The monthly event welcomes people from the media, film, music and fashion, as well art industries. DJs and special art-themed guests mingle in the hotel's Liberty Hall. Ace regulars include Ryan McGinley and Terrance Koh.

New York City Hotels

The art-conscious Surrey and Ace Hotels make a significant presence in the NYC hotel industry. The Surrey, a luxury boutique hotel, prides itself on providing one-of-a-kind service for its guests. Built in 1926 as a residence hotel, the original Surrey was home to celebrities such as JFK, Bette Davis, and Claudette Colbert. When renowned interior designer Lauren Rottet recreated the hotel, she paid attention to the hotel's history while modernizing the interiors.

The New York Times called the Ace Hotel – "the country's most original hotel." This 260-room, distinct boutique hotel is located in the heart of Midtown Manhattan and within walking distance of the Theater District, Times Square, and Macy's. Guests can easily take the Amtrak into Penn Station. The Ace Hotel is an affordable choice for visitors to New York City

Art World Descends on NYC for The Armory