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

NEW YORK Following a high-octane 2010, New York's hotel performance has pulled back this year. Year-to-date through March, New York's occupancy slipped 2.6% to 70.2%, average daily rate is up 4.6% to US$197.29, and revenue per available room ticked up by 1.9% to US$138.45, according to data from STR, the parent company of HotelNewsNow.com. All of those metrics are down when compared to the market's 2010 performance. Year-end occupancy was 81%, ADR was US$232.60, and RevPAR was US$188.38. That stellar performance lured a number of developers into the market, and the resulting

uptick in supply has made for a muted 2011 thus far, said STR VP Jan Freitag.

There are 173 projects comprising 20,650 rooms in the city's active pipeline as of April 2011, according to STR/ McGraw-Hill Construction Dodge. There are 53 hotels in construction in New York, comprising 6,712 rooms.

"We're seeing the fallout of that now," Freitag said of the development rush.

Through March, hotel supply is up 6.7% while demand is up 3.9%, according to STR data. By comparison, supply was up 4.8% in the Big Apple during 2010 with demand up 10%.

Read "NYC pipeline: Manageable growth?"

"Demand growth (in New York) is not visible because of supply," Freitag said.

Host Hotels & Resorts officials said during a first-quarter conference call with analysts that the company's New York portfolio RevPAR was down 2.5%, resulting from 7% declines in occupancy and rate.

"The first quarter in New York tends to be weak anyway, so increased supply probably accentuates that impact," Host (http://www.hosthotels.com/ourCompany.asp) president and CEO Ed Walter said. "Certainly all of our properties are pretty optimistic about how the rest of the year will play out. We're not expecting big RevPAR growth in Q2 because of renovations."

Host is in the middle of a repositioning of the Sheraton New York Hotel & Towers. Executive VP and CFO Larry Harvey noted that Host properties in the city likely will continue to struggle during the second quarter because of construction, but the company expects strong rebounds during the second half of the year.

NYC forecast
STR's second-quarter forecast for New York shows a 5% drop in occupancy to 81.8%, a 3.6% bump in ADR to US$235.24, and a 1.5% drop in RevPAR to US$190.76.

And for the full year 2011, STR projects the New York market's occupancy will dip by 3.5% to 78.2%, ADR will be up 4.9% to US$243.95, and RevPAR will increase by 1.2% to US$190.76.

It's unclear how long it will take New York to absorb all of its new rooms, Freitag said. "It's going to be a while," he said, adding that positive demand could shorten the absorption window.

Andrew Labetti, GM of The Benjamin, a 209-room hotel in midtown Manhattan, said it might take until the end of 2012 for the market to soak up the new rooms. Still, Labetti can feel the momentum beginning to gain yet again. Rates are rising despite the supply increase.

"I think we're through the worst of it," he said. "The market's coming back strong."

Optimism remains
During a first-quarter conference call with analysts, FelCor Lodging Trust's executive VP and CFO Andrew J. Welch indicated his optimism for the market.

"I think the outlook is fine on New York," he said. The storms and some other things had some impact, but New York isn't going anywhere.  New York is not a concern."

Freitag, too, said there are positive signs for the city, noting also that business appears to be going strong in New York. "We're still seeing seven out of 10 rooms sold.  New York's always very strong."

HotelNewsNow.com's Jason Q. Freed contributed to this report.

Read more on hotelnewsnow.com http://www.hotelnewsnow.com/articles.aspx/5546/Supply-increase-slows-NYCs-performance

FelCor Lodging Trust Incorporated (NYSE: FCH) announces it has entered into a binding purchase and sale agreement to acquire the fee-simple interests in two midtown Manhattan hotels, The Royalton and Morgans, for $140.0 million from Morgans Hotel Group Co. ("MHGC"). MHGC will continue to manage the properties, which have a total of 282 guest rooms, under a long-term management agreement. FelCor expects to complete the purchase of these two iconic hotels, funded with cash on hand, in the second quarter.

Read more on hospitalitynet.org http://www.hospitalitynet.org/news/154000320/4050853.html

Equities research analysts at Zacks Investment Research reiterated a “neutral” rating on shares of Morgans Hotel Group Co. (NASDAQ: MHGC) in a research note to investors on Thursday.Separately, analysts at Sidoti upgraded shares of Morgans Hotel Group Co.

During the first week of June, about 2,000 executives gathered for the New York University International Hospitality Industry Investment Conference. This knowledgeable group had good

news to offer about U.S. hotels. The gathering advised caution, however, concerning the future economy.

NYC Hospitality Conference

A cautious mood had been expected to infiltrate this event.

city has shut down 15 illegal hotels following a major sting operation

Epic LLC, a real estate company that invests in London and New York properties, is acquiring the newly developed Meatpacking District office building 15 Little West 12th Street for more than $70 million, Steven Elghanayan, one of the firm’s principals, has confirmed.

“We love the area and the neighborhood,” said Elghanayan, who operates Epic LLC with his brother Michael Elghanayan. “We think there is a lot of growth possibility here in terms of rents. We’re right across the street from the Standard Hotel. Apple has a store on 14th Street, Sephora is right across the street from our building on West 13th. Google just bought 111 Eighth Avenue nearby for a huge sum. The area is changing.”

Read More on Real Estate Weekly

V3 Hotels Taps Benchmark Hospitality to Operate New Independent Hotel in Downtown Brooklyn

Mar. 24, 2011 (Business Wire) — Brooklyn-based real estate development company V3 Hotels, has tapped Benchmark Hospitality International, a leading independent hospitality management company to operate its new hotel at 231 Duffield Street in Downtown Brooklyn.

A rendering of the new Hotel 718 in Brooklyn (Photo: Business Wire)

Dubbed “Hotel 718” in recognition of Brooklyn’s area code, the hotel will offer guests the finest in luxury, style, and comfort. The 128 guestrooms of Hotel 718, including four oversized suites, have been designed to deliver the perfect balance between casual and modern elegance.

The 19-story, $25 million hotel is set to open in November 2011 and will celebrate the heritage and culture of Brooklyn, New York. Designed by H. Thomas O’Hara, Hotel 718 will offer a relaxed yet functional environment required by today’s discerning traveler.

“We are excited to add a dynamic hospitality company like Benchmark to our team,” said Gregory Atkins, president of V3 Hotels. “Downtown Brooklyn is the fastest growing district in New York City and we know that there is a major demand for hotel rooms in the area,” Mr. Atkins added.

“As Brooklyn continues to become a major travel destination, we have to provide urban adventurers with an opportunity to stay at hotels that fit their lifestyles and desires,” said Daniel Reznik, operations director for V3 Hotels. “We know Hotel 718 will thrive in this niche market and beyond.”

“I am very pleased to announce our involvement with this exciting new hotel,” said Burt Cabañas, Benchmark Hospitality’s chairman and CEO. “We at Benchmark look forward to working closely with V3 as Hotel 718 becomes an active part of this unique Brooklyn neighborhood,” he added.

Hotel 718’s exterior is composed of a textured red artisan brick façade with floor-to-ceiling windows, and a rooftop sundeck. Ample parking is located nearby. Upon completion, the property will offer spa services, a cardio fitness room with an outdoor deck, original works of art hung throughout, and 24-hour Brooklyn-centric concierge services. The hotel will also feature an inspired 80-seat signature restaurant and bar. Guestrooms and public spaces at Hotel 718 will provide the most current technology, with high speed wireless Internet access, MP3 docking stations, large HD flat screen televisions, and gaming consoles on request.

The property is within walking distance of MetroTech Center, court buildings and both the Manhattan and Brooklyn Bridges, offering easy access to Brooklyn’s rich cultural amenities. These include the world-renowned Brooklyn Academy of Music, Brooklyn Museum of Art, Brooklyn Botanical Gardens, Frederick Law Olmsted’s masterfully-designed Prospect Park, and countless vibrant and diverse cultural and entertainment attractions day and night.

Hotel 718 is also steps away from Brooklyn’s historic Downtown brownstone neighborhoods, as well as sleek new residential towers, and is minutes from Manhattan by subway, bus, taxi or automobile. The nearby Brooklyn-Queens Expressway provides easy access to LaGuardia and JFK Airports.

Downtown Brooklyn is home to more than 100,000 office employees, eight universities and colleges with more than 57,000 students, Brooklyn Hospital Center, one of the busiest retail strips in the nation, and more than 40 premier arts and cultural organizations. Since 2006, more than $2.4 billion has been invested in Brooklyn’s Downtown area from the private sector.

http://www.businesswire.com/news/home/20110324006521/en/V3-Hotels-Taps-Benchmark-Hospitality-Operate-Independent

Domain Hotel properties is a hospitality company that specializes in the acquisition and development of hotel properties in major metropolitan cities throughout the United States and Rivera Maya Cancun Mexico Area.

Domain Hotels partners with the latest hospitality companies in order to provide superb quality that eclipses industry standards while creating a warm and friendly personable atmosphere.

On the Ave Hotel at 2170-2178 Broadway at 77th Street for $191 million

The estate of Lehman Brothers Holdings has taken control of the 169,664-square-foot On the Ave Hotel at 2170-2178 Broadway at 77th Street for $191 million, a spokesperson for the estate confirmed. "The strategy of the estate has been to maximize the value of its properties -- not to fire sale them," she said.

Source: http://twitter.com/#!/LoisWeiss/status/81091909468160000

http://www.rew-online.com/2011/06/16/estate-of-lehman-brothers-takes-control-of-on-the-ave-hotel-for-191-million/

and

http://therealdeal.com/newyork/articles/lehman-brothers-estate-takes-control-of-uws-hotel

The 304-room Huntington Hilton, foreclosed on last year, has been sold to Prudential Real Estate Investors and the Dow Hotel Co., according to the broker who worked on the deal.

Although the selling price wasn’t released, a source said it was close to $32 million.

In early 2010, San Clemente, Calif.-based Sunstone Hotel Investors defaulted on a $246 million mortgage that covered 11 hotels, the Huntington Hilton included. So the Hilton was turned over to the lenders who held the mortgage, the Massachusetts Mutual Life Insurance Company.

The Manhattan-based Cushman & Wakefield Sonnenblick Goldman team led by Tom McConnell and Ernest Lee represented the sellers.

Located at 598 Broadhollow Road, the hotel is the sole full-service Hilton on Long Island, featuring about 30,000 square feet of meeting space. McConnell said the Huntington Hilton is historically the second or third busiest when it comes to hosting events, so the property should continue to make money, even if hotel stays have slowed.

McConnell said the Melville hotel “needs a lot of renovation work.” The property underwent a $4.5 million renovation in 2003.

Dow Hotel is planning $15 million in new renovations to the hotel, according to a statement..

About The Dow Hotel Company | Founded in 1997, Seattle-based The Dow Hotel Company is a hotel owner/investor and operator of 11 first-class, full-service hotels with properties throughout the United States. The company’s portfolio of owned and managed properties consists of institutional-grade hotels, under such brands as Marriott, Hilton, Embassy Suites, Doubletree, Sheraton, and Crowne Plaza. The company aggressively seeks to acquire, co-invest with joint venture partners and/or manage mid- to large-size, first-class, full-service hotels, especially those with extensive food and beverage capabilities.

he company currently operates 14 food and beverage facilities, ranging from casual dining to upscale, bars/lounges with Starbuck and Tully’s coffee outlets. In addition to Basil’s Kitchen, the division’s restaurant concepts include SunSpot, BC Bistro, and Basil’s Bistro. Additional information about The Dow Hotel Company may be found at www.dowhotelco.com

Source: http://libn.com/2011/06/06/huntington-hilton-sold-for-32m/