Host Hotels & Resorts is reportedly looking to sell the W Hotel in Midtown Manhattan, New York City, to Capstone Equities and HEI Hotels & Resorts. If the deal goes through as planned, it would work out to $300,000 per key for the 697-room hotel, or approximately $209 million.
This sale would come on the heels of Capstone and partners’ acquisition of the 171-room Nyma hotel on 32nd Street last year, a deal that reportedly reached $52 million.
Due to an influx of supply, Manhattan hotels are seeing revenue drops, The Real Deal is reporting, with ADR dropping slightly. The decline is likely to lead to more asset sales—and opportunities for investors who are in it for the long term.
According to a recent report from STR, in absolute values, New York City had the country’s highest levels occupancy (86.7 percent), ADR ($255.54) and RevPAR (US$221.60) last year.
The number of hotel rooms under construction in New York City dropped 31.3 percent year-over-year between December 2016 and December 2017, but the city remains the national leader with 12,074 guest rooms in the pipeline across 69 hotels.
Source: Hotel Management