An offshore investment fund plans to buy a 70-key hotel in Midtown from a real estate investment trust for $37 million, or $529,000 per key.
The sale of the 21,955-square-foot Hotel 373 at 373 Fifth Avenue is expected to close in the second quarter.
The current owner is Pennsylvania-based Hersha Hospitality Trust, the New York Observer reported. The REIT bought the property for $9.5 million in 2004, according to property records.
Hersha also owns the Hyatt Union Square hotel, which the REIT purchased for $104.1 million from McSam Hotel Group in the summer of 2011.
In addition to the rooms, Hotel 373 houses 2,300 square feet of retail space, according to property records.
“The pricing on the sale of Hotel 373 is indicative of Manhattan’s highly sought after real estate market, and underscores the quality and value of Hersha’s New York City hotel portfolio,” Jay Shah, chief executive of Hersha, said in a statement sent to the Observer. [NYO] – Angela Hunt