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Manhattan Holiday Inn sells at a significant loss on the COVID trend

chelsea holiday inn sale at loss
Holiday Inn at 125 West26th Street in Chelsea. Google Maps

The coronavirus pandemic may be declining, but the hospitality industry is still so It's not hot.

An ongoing trend is that another hotel (this time the Holiday Inn in Chelsea on 125 West 26th Street) sold, albeit at a significant discount. 

TwoKings Management has paid owner Watermark Lodge Trust about $ 80.3 million for budget-friendly accommodation. This is far from the $ 111 million Watermark paid to the address in 2013.Crain reports.

Not only did Watermark spend about $ 31 million less than it paid for real estate nine years ago, but Chicago-based real estate investment trusts add another $ 8 million to full service. Brought about refurbishment and capital improvements. Hotel. At one point, the value of the 226-room inn was in the $ 121 million stadium, but the pandemic has brought a significant number to its valuation. According to the April analysisby company Trepp, the value of the hotel was 30. It is a percentage less than before COVID-19. 

According to Crain ’s, the $ 72 million loan to the property has not helped Watermark to resell its establishment since at least January.

"Unfortunately, it is very misleading for hotels and their workers to suggest that the industry will recover soon," said Vijay Dandapani, president and CEO of the New York City Hotel Association. } I looked back. confused, a publication on the future state of the loan-stricken industry. "The only way for the New York hotel industry to fully recover is whether itstax burden will be reduced byand debt will be reduced." 

Indeed Hotel bargain deals in Manhattan are not difficult to find these days. Holiday Inn price cuts are just a few of the latest, including a loss of about $ 186 million on Midtown DoubleTree. The sale of the Lexington Hotel cost about $ 160 million.