Gramercy Park Hotel Hits the Market and Could Fetch $260M
Get ready for another blockbuster sale. Following in the footsteps of Hilton who just sold off the Waldorf Astoria Hotel to Chinese Insurance Company Anbang for $1.95 billion, Aby Rosen and Michael Fuchs have put their prized Gramercy Park Hotel on the market. Crain‘s reports that the 186-room, 18-story hotel located at 2 Lexington Avenue could sell for an impressive $260 million.
The hotel was renovated back in 2006 for $200 million and then encountered several bumps during the recession which led its owners to default on a mortgage loan—and the eventual restructuring of debt after buying then-partner Ian Schrager’s share in the property. Now, Rosen and Fuchs are banking on the strength of the Manhattan hotel market, which has historically seen a discount when it comes to Downtown properties. If the hotel is to sell at more than its valued $260 million, on a per-room basis, it will garner a trading price greater than higher than the $1.4 million per suite seen in the Waldorf deal.
According to Crain’s, the owners are also considering other options like refinancing of the hotel or selling off just a percentage of ownership. Eastdil Secured is marketing the building to potential investors.
[Via Crain’s]
