For some time now, the hotel market in New York City has been one that favors sellers, especially as it pertains to hospitality properties in the city’s most vaunted area, Manhattan.
A news report this week certainly seems to reinforce that idea. Citing an unnamed person familiar with the matter as well as documents obtained by the international business media network Bloomberg, hospitality outlets are now reporting that AIG Global Real Estate is seeking buyers for a Manhattan hotel that could potentially fetch upwards of more than $200 million. These reports go on to note that AIG has tapped Eastdil Secured LLC to find prospective buyers for the 310-room Embassy Suites by Hilton New York Midtown Manhattan on West 37th Street.
More About the Embassy Suites Hotel in Manhattan
The newly developed 39-story hotel, which includes event space, opened in January and has been fully operational since July. Embassy Suites by Hilton is an upscale, all-suite brand. It’s only New York location is majority-owned by AIG and was co-developed by Hidrock Properties and The Buccini/Pollin Group.
Some major stakeholders have been reticent to talk to reporters. According to reports, Jessica McGinn, an AIG spokeswoman, declined to comment and an Eastdil representative also declined to comment on the matter. This, however, is unsurprising giving the ongoing nature of this matter.
More About the Hot Hotel Market in New York City
There is arguably no hotter market for selling hotel than New York City right now, experts say.
The reason is that the market is thriving. In fact, New York hotels have outperformed ,amy other comparable big cities so far this year, with revenue per available room increasing by 4.6 percent through August, according to lodging data provider STR Inc. That compares with 3.7 percent growth for the top 25 U.S. markets.
Some owners have also recently sought to take advantage of heightened investor interest. New York’s landmark Plaza Hotel was acquired for $600 million, Host Hotels & Resorts Inc. sold two W Hotels in Manhattan for a combined $361 million and a fund managed by UBS Asset Management sold The Quin for $175 million. Deals have also been struck for the Times Square Edition, the Viceroy Hotel, the Parker New York Hotel, and the Hotel Indigo, a Lower East Side boutique.
The Embassy Suites in Manhattan first opened in July of this year, and while the stakeholders are not exactly commenting to the media, one imagines that if a sale of $200 million for the property can be solidified soon, it will ultimately be a deal that makes those selling the property, AIG Global Real Estate, very happy with the net gain, indeed.
New York City is the largest city in the United States, and it has long been a popular destination for both domestic and international tourists in the country.
Let’s take a look at a few other projects currently underway in New York: