The hospitality industry has improved around the nation as well as in New York City. Average daily rates, occupancy levels and average room rates are close to reaching all time record levels. Domestic and as well as foreign investors are very interested in acquiring hospitality assets especially in Manhattan.
Earlier this month, the Great Eagle Group, one of Hong Kong's leading property companies, and owner operators of Langham Hotels International, have agreed to acquire a condominium interest in the mixed use hotel and luxury residential condominium tower the Setai Fifth Avenue at 400 Fifth Avenue. The Hong Kong traded company will acquire the 214 room Setai Hotel and will re-brand the hotel as a Langham in 2013. The purchase price of $229 million, or $1,070,000 per key, is one of the highest prices paid per room for a hotel in New York City.
Also this month, a joint venture of Rockpoint Group, Goldman Sachs' Real Estate Principal Investment Area, and Highgate Holdings, paid $275 million, or $413,533 per key to Starwood Hotels & Resorts Worldwide for the Manhattan at Times Square Hotel.
Last month, a joint venture of real estate investment trust, Strategic Hotels & Resorts and an affiliate of KSL Capital Partners LLC closed on the purchase of the JW Marriott Essex House, the 81 year old hotel on Central Park South. The joint venture paid $362.3 million or approximately $685,000 per unit for the 509 hotel rooms and nine condominiums.
In August, India's Sahara Group closed on the purchase of a controlling stake in the landmark Plaza Hotel, paying approximately $570 million. According to the trade, the Sahara Group is also in contract to acquire an 85 percent stake in the Dream Downtown Hotel, in the meatpacking district at 355 West 16th Street.