With hotels trading well below par, hospitality hasn’t recovered
Although many industries have partially or fully recovered from the pandemic, many hotels—even major buildings—are selling at steep discounts relative to their value just a few years ago.
The Sheraton New York Times Square Hotel, a 1,780-room landmark, is scheduled to sell for $365M, less than half of what owner Host Hotels & Resorts paid for the property in 2006. Host has been struggling to sell the 51-story building since 2018.
Hotel occupancy in the region is still well below pre-pandemic rates, and with New York City tourism down, many other properties are likely to be available at bargain prices. This could be the start of an investment opportunity.
Because it can be critical for deals to move quickly in such transactions, Cornerstone brings both connections and extensive experience to the table. We can connect investors to the major industry players and help developers, investors, and real estate investment trusts conclude deals quickly, efficiently, and cost-effectively.
If you have any questions about hotel deals or potential title issues, or if you would like to discuss an upcoming or prospective transaction, please contact us.