search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aDavid Werner strikes $115M deal to snap up 100 Wall Street at big discountDavid Werner strikes $115M deal to snap up 100 Wall Street at big discountHarry Macklowe faces major losses on Miami, Midtown projectsHarry Macklowe faces major losses on Miami, Midtown projectsSterling Bay, JPMorgan at odds with Wells Fargo on $230M Fulton Market debtSterling Bay, JPMorgan at odds with Wells Fargo on $230M Fulton Market debt
New York

Four Seasons Hotel New York sees $900M offer

Ty Warner and Four Seasons Hotel New York
Ty Warner and Four Seasons Hotel New York

Billionaire  Ty Warner — the Beanie Babies tycoon — has received a $900 million offer for his Four Seasons Hotel New York, possibly from an unidentified Asian investor, sources told the Wall Street Journal. Warner purchased the 368-room hotel, located at East 57th Street, for $275 million in 1999. If Warner accepts the offer  — equivalent to about $2.4 million per room — it would be one of the priciest hotel sales ever in Manhattan, according to the Journal.

Four Seasons Hotels and Resort must now decided if it is prepared to match the offer in order to keep the flagship location. In 2009, when Warner received another offer for the hotel, Four Seasons declined to match the offer and Warner eventually walked away from the offer.The Four Seasons operates, but does not own any of its 92 hotels.

Sign Up for the undefined Newsletter

If Warner accepts the offer and the new owner removes the Four Seasons brand, Warner will be required to pay a termination fee, which is likely to amount to tens of millions of dollars, a source told the Journal.

“It’s among the top three or four hotels in terms of average room rate in New York,” John Fox, senior vice president for hotel consulting firm PKF Consulting USA in New York, said. “But $900 million strikes me as a bit beyond what I expected.…I’d be very surprised if it actually trades for that.” [WSJ] —Christopher Cameron

Tags
Four Seasons