Over 50% loss
Times Square Sheraton trades to MCR for $356M – a nearly $400M loss
One of New York City’s largest hotels traded hands — at a nearly $400 million loss from its last sale.
Hotel owner-operator MCR agreed to acquire the Sheraton New York Times Square from Host Hotels & Resorts for $356 million, according to research platform Green Street. The 1,780-key hotel last sold in 2006 for $738 million, more than double what it is today, according to property records.
Once closed, the deal would mark the city’s largest hotel sale in about two years, Green Street noted.
The 51-story hotel at 811 7th Avenue is the third-largest in the city by room count. The property, which opened 60 years ago, in February hosted the New York Democratic Convention.
Host attempted to sell the property in 2018 via Eastdil Secured, seeking up to $550 million on a sale, according to Green Street. Two years later, Host acknowledged the fair market value of the property had dropped to $495 million.
MCR owns 140 hotels across 37 states. Other New York hotels in its portfolio include the TWA Hotel, the High Line Hotel and The New Yorker.
The hotel industry showed some signs of life in New York last month, but only after the winter slow season hit properties harder than usual.
Hotels averaged a 56.5 percent occupancy rate for the week ending Feb. 19, according to STR data. The city’s occupancy rate dipped as low as 40.3 percent in early January as Omicron and staff shortages raged.
In the week ending Dec. 11, occupancy soared as high as 81.5 percent, the best mark since the start of the pandemic.
Times Square Sheraton Trades to MCR for $356M - The Real Deal
The Sheraton New York Times Square has a new owner in MCR, which paid $356 million for the 1,780-key hotel on 7th Avenue.
therealdeal.com
Times Square Sheraton trades to MCR for $356M – a nearly $400M loss
The 1,780-key hotel was sold by Host Hotels & Resorts
One of New York City’s largest hotels traded hands — at a nearly $400 million loss from its last sale.
Hotel owner-operator MCR agreed to acquire the Sheraton New York Times Square from Host Hotels & Resorts for $356 million, according to research platform Green Street. The 1,780-key hotel last sold in 2006 for $738 million, more than double what it is today, according to property records.
Once closed, the deal would mark the city’s largest hotel sale in about two years, Green Street noted.
The 51-story hotel at 811 7th Avenue is the third-largest in the city by room count. The property, which opened 60 years ago, in February hosted the New York Democratic Convention.
Host attempted to sell the property in 2018 via Eastdil Secured, seeking up to $550 million on a sale, according to Green Street. Two years later, Host acknowledged the fair market value of the property had dropped to $495 million.
MCR owns 140 hotels across 37 states. Other New York hotels in its portfolio include the TWA Hotel, the High Line Hotel and The New Yorker.
The hotel industry showed some signs of life in New York last month, but only after the winter slow season hit properties harder than usual.
Hotels averaged a 56.5 percent occupancy rate for the week ending Feb. 19, according to STR data. The city’s occupancy rate dipped as low as 40.3 percent in early January as Omicron and staff shortages raged.
In the week ending Dec. 11, occupancy soared as high as 81.5 percent, the best mark since the start of the pandemic.