NY sees uptick in hotel deals

From left: Fashion 26, the Doubletree Metropolitan and the Milford PlazaThe recent uptick in occupancies and room rates at New York’s hotels have helped spur an increase in deal activity and values. After only two lodgings sold in 2009, there were 13 deals made last year, worth $1.4 billion. Three deals worth a total of $651.5 million took place in the fourth quarter, according to data provided by Massey Knakal Realty Services to the Wall Street Journal. Hotel prices on a price-per-room basis declined to $407,286 in 2009 from their peak of $586,544 in 2006, according to Massey Knakal. Prices have rebounded roughly 12 percent since then, the firm reported. This rise was reflected in the fourth-quarter prices paid for the Fashion 26 and Doubletree Metropolitan hotels. The Fashion Tree, at 152 West 26th Street in Chelsea, sold for $119.9 million, close to $428,214 per room, and the Doubletree Metropolitan, at 569 Lexington Avenue in Midtown, sold for $331.6 million, $425,712 per room. The Milford Plaza, at 700 Eighth Avenue in the Theater District, went for much less, at $200 million, about $153,846 per room, because it was closed at the time of sale for a renovation. It has since reopened under new management. [WSJ]

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