News

Manhattan Holiday Inn to be sold at huge loss amid COVID trend

The coronavirus pandemic may be ebbing, but the hospitality industry is still not that hot.

In an ongoing trend, another hotel — this time Chelsea’s Holiday Inn at 125 W. 26th St. — was sold, albeit at a deep discount.

Two Kings Management paid owner Watermark Lodging Trust about $80.3 million for the budget accommodations — a far cry from the roughly $111 million Watermark paid for the address in 2013, Crain’s reported.

Not only did Watermark receive about $31 million less than what it paid for the property nine years ago, but the Chicago-based Real Estate Investment Trust had poured an additional $8 million into the full-service hotel for renovations and capital improvements. While the 226-room inn’s value has at times been in the $121 million range, the pandemic has had a number of impacts on its valuation: The hotel is now worth 30 percent less than it was prior to COVID-19, according to an April analysis by Trepp.

A $72 million loan for the property hasn’t helped Watermark resell the home, which Crain’s says has been trying since at least January.

“Unfortunately, it is extremely misleading for hotels and their employees to assume that the industry will soon make a full recovery,” Vijay Dandapani, president and CEO of the Hotel Association of New York City, said of the publication on the future state of the neglected. credit-ridden industry. “The only way for the New York hospitality industry to make a full recovery is to lower its tax burden so it can pay down debt.”

In fact, Manhattan hotel bargains haven’t been hard to find lately, with the Holiday Inn’s reduced price being just the latest of many, including the sale of a Midtown DoubleTree at a loss of about $186 million and the sale of the Lexington Hotels with a loss of about $160 million loss.

https://nypost.com/2022/07/01/manhattan-holiday-inn-sells-at-a-massive-loss-in-covid-trend/ Manhattan Holiday Inn to be sold at huge loss amid COVID trend

JACLYN DIAZ

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button