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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