Hotel Sector Hits the Ground Running in 2001

NEW YORK CITY-This year has started out hot for the hotel industry. Within the last couple of weeks major deals have been announced. The latest is the sale of the Best Western MacArthur Hotel in a $21.75 million transaction brokered by Insignia/ESG Hotel Partners.

First Cendant Corp., based here, reported it acquired Holiday Cottages Group Limited. HCG is the leading rental cottage in the United Kingdom. The deal represents the continuing trend of diversification abroad and the continuing faith in the British market. Steve Holmes, chairman of Cendant’s Travel Division, comments, “HCG’s product offering and business model are a great complement to our existing European travel operations.”

Last week Olympus Real Estate confirmed it has enlisted Eastdil Realty to broker the sale of the Algonquin Hotel on West 44th Street. While hotel officials would not confirm the price tag, published reports estimate the asking price at $55 million. The hotel was purchased in 1997 for $32.6 million and in 1998 several million dollars were invested on renovations, with further updates made this month. The 165-room hotel was built in 1902 and is considered a significant part of the city’s history.