The Reel

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A blog for breaking sales and neighborhood real estate news.

Without a doubt, the Manhattan hotel segment of the market has surged this year. Since hotels are not subject to long term leases and adjust their income daily, their pricing and demand can shift quickly.

Last year, only 13 hotels sold, whereas 14 have already traded in the 1st half of this year. More impressively, these recent sales added up to $2.4B, which is 73% more than 2010’s total. (This was also more than 10 times 2009’s total from only two sales, but few people take any stock when comparing to this year!) 

The average 1H11 price per key was $429,089, which was also up 12% from last year. The largest hotel sale this year was the Park Central at 870 Seventh Avenue at West 55th Street for $405,500,000, which equated to $434,154 per key. Bethesda, Md.-based real estate investment trust LaSalle Hotel Properties purchased the property.

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