Buyers have been snapping up hotels at bargain prices in Manhattan, betting they'll be able to turn a profit when tourism regains its full strength in NYC.
The latest domino to fall is the Sheraton New York Times Square, which reportedly sold for half the price the owner paid when it was last acquired in 2006. MCR and Island Capital Group said they paid $373M for the Sheraton.
Recent Manhattan hotel trades involving bargain-basement prices include the Midtown DoubleTree on Lexington Ave., which was sold by RLJ Lodging Trust to Hawkins Way Capital for $146M, a sale price less than half of what RLJ Lodging paid for the property in 2010; the Mandarin Oriental on Columbus Circle was sold in January for $98M, also a significant discount.
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