It has the dubious distinction of being known as New York's dirtiest hotel, but that still won't prevent it selling for a high price. Multiple outlets are reporting that the Hotel Carter, located at 250 West 43rd Street, could soon be acquired for as much as $170 million.
The former Times Square flophouse, which has been named three times by TripAdvisor as the dirtiest hotel in the U.S., has reportedly attracted about a half dozen offers from developers and investors since it was put up for sale late last year. Those include Highgate Hotels and Morris Moinian’s Fortuna Realty. A winning bidder is expected to be selected this week.
Why the interest and price tag for the 600-room hotel? For one, it's New York, where real estate values contineu to rise—no matter what type or condition the property. Second, hotel rates in and around Times Square average around $285 per night, adding to hotel developer interest. "Everyone wants to stay there," Moinian told The Wall Street Journal. "Today, it is the biggest destination for world travelers."
Eastdil Secured is marketing the hotel, which GF Management has been operating since the end of last year when the hotel hit the market.
Beyond the sale, a huge renovation would ensue to bring the property up to snuff. The managing director of GF Management told Curbed that work would cost at least $125 million and require replacing the elevators, boilers, pipes, heating, ventilation and air conditioning.
Tran Dinh Truong owned the hotel from 1977 until he died in 2012. The hotel first opened in 1930 as the Hotel Dixie, but like the rest of Times Square, started to deteriorate in the 1970s.