Some well-known New York hotels most likely will have new owners in 2014. As The Commercial Observer writes, with a number of large assets on the market, the trade of New York hotels is expected to pick up in 2014.
"Some of them won’t close by the end of the year but I haven’t seen this many large assets on the market in a long time,” Justin Magazine, VP at Savills, told The Commercial Observer.
Properties currently on the market include the Standard High Line (pictured) in the Meapacking District, and The London New York in Midtown. Blackstone Group owns the property and is reportedly seeking at least $500 million for it.
Meanwhile, Simon Fuller, the producer behind American Idol, is reportedly looking at buying the Standard High Line for around $450 million.
André Balazs Properties, the hospitality company behind The Standard, selected Savills Hospitality Group to represent the brand in identifying an investment partner and exploring the sale of High Line hotel.
Trophy properties could also move. even the Four Seasons, owned by Beanie Babies founder Ty Warner. Only a year ago, an unidentified party or person offered $900 million for the midtown luxury hotel, where the top suite rents out for $30,000 per night.
Demand, The Commercial Oberserver observes, is coming from both domestic and overseas investors "interested in buying institutional quality flag assets or bringing new brands to the New York market."
It also writes that the Lower East Side, Lower Manhattan and Nomad are among the markets generating the most interest from potential buyers. Of note, Savills Magazine said banks are "willing and aggressive" to lend to hotel owners in New York, as much as 75 percent in debt, the article notes.