Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 05 November 2018

Host Hotels Selling Westin in Manhattan for $300Mln, Reducing New York City Exposure

Host Hotels & Resorts Inc. has taken another step toward reducing its exposure to New York City, a market it says is oversupplied. It has agreed to sell the Westin New York Grand Central in Manhattan for $300 million. The company's New York hotels have underperformed the rest of its portfolio.

Commercial Real Estate Direct Staff Report

Host Hotels & Resorts Inc. has taken another step toward reducing its exposure to New York City, a market it says is oversupplied.

The Bethesda, Md., REIT, has agreed to sell the Westin New York Grand Central hotel in Manhattan for $300 million, or $387,597/room. The deal, to an undisclosed buyer, is expected to close during the first quarter.

Host had purchased the 774-room property, formerly known as the New York Helmsley, in 2011 for $313.5 million. It re-branded the property, at 212 East 42nd St., as a Westin in 2012 and invested $65 million on a renovation to its rooms, lobby and bar/restaurant area. It also upgraded more than 15,000 square feet of meeting space.

The property is among Host's top performers, having generated $250.02 in revenue per available room last year.

The company, which owns 93 hotels with 52,119 rooms, has sold two other Manhattan hotels this year: the 697-room W hotel at 541 Lexington Ave., which was purchased for $190 million by a venture of Capstone Equities and Highgate Holdings that has re-named it the Maxwell, and the 270-room W New York Union Square that Westbrook Partners purchased for $171 million. Host had acquired that property, at 201 Park Ave. South, in 2010 for $185.3 million.

In addition, the REIT sold its 46 percent interest in the retail condominium at Manhattan's Marriott Marquis for $442 million to Vornado Realty Trust. That asset, at 1535 Broadway,...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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