Capstone and HEI are in talks to buy W Hotel for $209M
Price for the Midtown property would work out to $300K per key
Host Hotels & Resorts is negotiating to sell its luxury W Hotel in Midtown to Capstone Equities and HEI Hotels & Resorts for about $209 million.
The sales price would work out to about $300,000 per key for the 697-room hotel at 541 Lexington Avenue, according to Real Estate Alert.
Revenue growth has slowed at Manhattan hotels thanks to increased supply, leading some real estate investment trusts to sell properties and creating opportunities for buyers who are confident in the long-term health of the borough’s hotel market. Occupancy rates at luxury hotels in the borough were up slightly at 81.3 percent last year, while the average room rate was down slightly at $447.08.
The W Hotel is located between East 49th and 50th streets, close to Rockefeller Center, and its amenities include a spa, bar, restaurant and 14,000 square feet of meeting space.
Last year, Capstone and partners purchased the 171-room Nyma hotel at 6 West 32nd Street for $52 million. [REA] – Eddie Small