This Bloomberg scoop shows just how much it's become a sellers' market for hotel owners in New York City. AIG's Hilton Embassy Suites property has only been operational since July. Now it's on the block.
AIG Global Real Estate is seeking buyers for a Manhattan hotel that could fetch more than $200 million, according to a person familiar with the matter.
AIG has tapped Eastdil Secured LLC to find prospective buyers for the 310-room Embassy Suites by Hilton New York Midtown Manhattan on West 37th Street, according to the person and marketing documents obtained by Bloomberg.
The newly developed 39-story hotel, which includes event space, opened in January and has been fully operational since July. Embassy Suites by Hilton is an upscale, all-suite brand. It’s only New York location is majority-owned by AIG and was co-developed by Hidrock Properties and The Buccini/Pollin Group.
Jessica McGinn, an AIG spokeswoman, declined to comment and an Eastdil representative declined to comment.
New York hotels have outperformed other big cities so far this year, with revenue per available room increasing by 4.6 percent through August, according to lodging data provider STR Inc. That compares with 3.7 percent growth for the top 25 U.S. markets.
Some owners have recently sought to take advantage of heightened investor interest. New York’s landmark Plaza Hotel was acquired for $600 million, Host Hotels & Resorts Inc. sold two W hotels in Manhattan for a combined $361 million and a fund managed by UBS Asset Management sold The Quin for $175 million. Deals have also been struck for the Times Square Edition, the Viceroy Hotel, the Parker New York Hotel, and the Hotel Indigo, a Lower East Side boutique.
©2018 Bloomberg L.P.
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Photo credit: Manhattan's hotel market is red hot for sellers. Shinya / Visual Hunt