Over the past few years, hoteliers have been landing in Brooklyn in unprecedented numbers, lured in large part by cheaper real estate, according to the New York Times. Contributing to the trend are budget hotels like the Sheraton Brooklyn, which opened in May, and the Best Western, which now has three locations, as well as boutique properties like Boerum Hill’s Nu Hotel and Williamsburg’s Hotel Le Jolie. Around 40 more hotels are in the pipeline for the borough, according to Smith Travel Research. But although land is less costly and easier to come by in Brooklyn than in Manhattan, it also comes with risk. Brooklyn rooms averaged $147 per night in May, compared to $255 in Manhattan and $205 in the city overall, according to STR, which up until now, did not release specific Brooklyn numbers because there weren’t enough hotels to draw from. The occupancy rate was 72 percent, versus 91 percent in Manhattan. Plus, the key business traveler guest contingent tends to prefer Manhattan. But there will always be travelers coming into town to visit friends and relatives, and they make up a large part of the Brooklyn lodging clientele. Javier Egipciaco of the Nu Hotel said nearly a third of his business comes by word of mouth within the community. [NYT]

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Sam Chang is selling the Hampton Inn at 337 West 39th Street and the Candlewood Suites at 339 West 39th Street

Hersha Hospitality Trust, a Pennsylvania real estate investment trust, plans to spend $110 million it raised as part of a public offering last week to buy two Midtown hotels developed by Sam Chang, according to an announcement from the investment company last week.

Hersha will pay $54.3 million for the purchase of the 184-room Hampton Inn at 337 West 39th Street and $55.5 million for the 188-room Candlewood Suites next door at 339 West 39th Street, documents filed with the U.S. Securities and Exchange Commission show.

The purchase price of $110 million for the 372 rooms comes to a cost of $295,698 per room. The two hotels, as well as a third hotel, a 210-room Holiday Inn Express at 343 West 39th Street, all between Eighth and Ninth avenues, were developed by Chang’s McSam Hotel Group and opened in July 2009, and were expected to be sold together last summer to Hersha. Chang said in an interview today his company was still operating the third hotel at 343 West 39th Street, which remained available for sale. And he said he will not make money on the sale of the two hotels when they do close. “Pretty much we probably broke even. Maybe lost a little money,” he said. [more]

Hotel developer Sam Chang has finally lined up a buyer for his three-pack of budget hotels on West 39th Street, The Real Deal has learned. Chang and his company’s COO Gary Wisinski of McSam confirmed they have a deal in the works that’s set to close next month for the three hotels in one building with separate entrances at 337, 339 and 343 West 39th Street. Sources said the buyer is Hersha Hospitality, a Philadelphia-based, publicly traded REIT and an affiliate of the Hersha Trust, which has partnered with McSam before. Last year, Chang boasted to The Real Deal that he and all the Hersha Hospitality Management partners have similar large diamond rings and diamond-encrusted Rolexes. Chang denied Hersha is the buyer, but noted he has signed a strict confidentiality agreement related to the sale. [more]