NEW YORK CITY-The 773-key New York Helmsley Hotel is trading hands for between $310 million and $315 million, the Wall Street Journal reported Tuesday. Citing unnamed sources, the WSJ said Host Hotels & Resorts is acquiring the East 42nd Street lodging property from the estate of Leona Helmsley.
Host will then spend more than $50 million to renovate it, the WSJ reported. While the selling price of $401,000 per room is below the city’s average of $424,150 per room, let alone the $367 million cited as a possibility by Cushman & Wakefield’s Mark Gordon in a Crain’s New York Business article this past November, the hotel reportedly has not undergone a major capital improvement program in more than a decade.
In November, Crain’s reported that the hotel, being marketed by CB Richard Ellis, attracted 15 bidders that put up offers of at least $300 million each. GlobeSt.com’s calls Tuesday to CBRE and Host Hotels were not returned by deadline.
The deal is not expected to close until the end of this quarter. Click here for the complete WSJ article.
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