The last 12 months have not been great for New York City's hotel owners. New supply is pushing both rates and occupancy levels down, and the attempted travel ban is hurting visitor numbers.
But that doesn't mean that the Big Apple's hotels are going rotten. Far from it: Within ten blocks of one another in Midtown, a hotel is hitting the market for an expected nine figures, and a recently reopened property has secured another nine figures to refinance.
$213 Million
UBS Realty Investors has put the Quin hotel at 101 West 57th Street on the market.
The 17-story, 213-guestroom property could fetch more than $1 million per room, or more than $213 million.
UBS acquired the former Buckingham Hotel for $60 million in 2010 from a partnership headed by Equinox founder Danny Errico, then renovated and rebranded it. According to the Real Deal, UBS has wanted to sell the building for more than a year, but held off due to "turbulence" in the hotel market.
Now, a team led by Lawrence Wolfe of Eastdil Secured is marketing the property. Wolfe is also marketing the Park Lane Hotel on Central Park South on behalf of developer Steve Witkoff.
$290 Million
Intercontinental Hotels Group has secured $290 million from Deutsche Bank to refinance the New York Barclay hotel in Midtown East, according to property records filed with the city Thursday.
The loan includes $7 million in new financing, and replaces the remaining balance of $283 million in previous loans from the same lender.
In late 2013, IHG sold a majority stake in the hotel to Qatar's Constellation Hotel Holdings for $240 million. As part of the deal, Constellation would hold an 80-percent stake in the hotel, and IHG secured a 30-year management contract with two ten year extension rights at IHG’s discretion, giving an expected contract length of 50 years.
In the fall of 2014, the Barclay checked out its last guest and closed its doors to begin a massive transformation that lasted for 20 months and cost $180 million. The doors reopened last year on a new design courtesy of IHG Design Studio, architects Stonehill + Taylor, interior design firm HOK (formerly BBGM) and Shawmut Construction.
In other words, while New York's hotels may have some challenges ahead, the deals are still happening, and the money is still changing hands.