CIM Group appears poised to depart from a Manhattan hotel formerly known as Trump SoHo.
Cain International is nearing a deal to purchase the property, now dubbed the Dominick Hotel, for over $175 million, as reported by Bloomberg, citing people familiar with the talks.
CIM originally took control of the asset in 2014 after winning a foreclosure auction, according to The Wall Street Journal. The Trump Organization was involved with the property up until CIM struck a buyout deal in 2017. At the time, the property was struggling to recover from the Great Recession, with CIM also exploring an exit in 2022, according to Bloomberg.
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Now, Cain will add the 391-room luxury hotel to its New York portfolio. Bloomberg said that the asset manager will look to reposition the Dominick Hotel, but what the specifics are exactly remain unclear.
That comes as Cain is working on the redevelopment of two high-end hotels, per the news outlet: Delano Miami Beach and California located Beverly Hilton.
While Cain will make a bet on revitalizing the Dominick Hotel, it may come at a challenging time for hospitality, as the global trade war sparks economic concerns. In fact, travel expenditures are already starting to wane, according to a recent report from Colliers. The CRE firm found that lodging spending is down about 2.5 percent this year, while airline spending has plunged by roughly six percent. Colliers warns that this trend could harm hotel occupancy, average daily rates and revenue per available room.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
