Gramercy Park Hotel Hits the Market and Could Fetch $260M

Posted On Mon, October 27, 2014 By

Posted On Mon, October 27, 2014 By In Gramercy Park, Hotels

Get ready for another blockbuster sale. Following in the footsteps of Hilton who just sold off the Waldorf Astoria Hotel to Chinese Insurance Company Anbang for $1.95 billion, Aby Rosen and Michael Fuchs have put their prized Gramercy Park Hotel on the market. Crain‘s reports that the 186-room, 18-story hotel located at 2 Lexington Avenue could sell for an impressive $260 million.

The hotel was renovated back in 2006 for $200 million and then encountered several bumps during the recession which led its owners to default on a mortgage loan—and the eventual restructuring of debt after buying then-partner Ian Schrager’s share in the property. Now, Rosen and Fuchs are banking on the strength of the Manhattan hotel market, which has historically seen a discount when it comes to Downtown properties. If the hotel is to sell at more than its valued $260 million, on a per-room basis, it will garner a trading price greater than higher than the $1.4 million per suite seen in the Waldorf deal.

According to Crain’s, the owners are also considering other options like refinancing of the hotel or selling off just a percentage of ownership. Eastdil Secured is marketing the building to potential investors.

[Via Crain’s]

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Neighborhoods : Gramercy Park

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