Hotel 373 and the Historic Waldorf Astoria in Midtown Manhattan May Hit the Market
- Mar 03, 2014
By Veronica Grecu, Associate Editor
Hersha Hospitality Trust, a self-advised real estate investment trust that owns and manages around 8,000 hotel rooms in 50 hotels in urban gateway markets across US, recently announced it has entered into a definitive agreement to sell the Hotel 373 located in Midtown Manhattan to an unnamed offshore investment fund.
A statement announcing the transaction reveals the 70-room European-style boutique hotel is valued at $37 million or nearly $529,000 per key and $1,680 per square foot, which highlights Manhattan’s sizzling real estate market and underscores the quality and value of Hersha’s hotel portfolio in New York City. The transaction is expected to close in the second quarter of 2014, the company announced.
“We believe the sale of Hotel 373 will narrow the gap between the private and public market value of the Company’s real estate,” stated Jay H. Shah, Hersha’s chief executive officer. “The transaction is a strong indication of continuing domestic and international interest from public and private groups seeking to acquire cash flowing real estate in top U.S. gateway markets. We remain optimistic regarding the long-term prospects of the New York City hotel market, but we will continue to search for opportunities to divest high-yielding, stabilized assets and to redeploy the proceeds into higher growth opportunities or to pursue stock buyback opportunities at periods when the stock price does not appropriately reflect value,” he added.
According to a property report from PropertyShark.com, the eight-story building located at 373 Fifth Avenue was constructed in 1906.
In further Midtown Manhattan hospitality news, Hilton Worldwide Holdings Inc. may sell a stake in the historic Waldorf Astoria hotel or possibly the entire property. In an interview with Bloomberg, Hilton CEO Christopher Nassetta said that the company is evaluating how the property could be repositioned, as Hilton is considering residential, office and retail uses for the luxury hotel located at 301 Park Avenue. Nassetta stressed that Hilton would continue to operate the Waldorf Astoria—which is one of the largest hotels in New York City—after any sale.
Opened in 1931, the 47-story Art-Deco structure was designed by Schultze and Weaver Architects. Hilton Worldwide Holdings Inc. acquired the 1,232-room hotel in 1972.
Image of Hotel 373 via PropertyShark.com; Image of the Waldorf Astoria via Facebook