Oxstones Investment Club™

« | »

New Eight-Story Seventy Key Branded Hotel Available ($25MM), Prime Corner in Heart of NYC Artistic Community

22k sf, 4,370sf lot, (.10-acre), 5 FAR, 70 Keys, *Price Negotiable

This is a newly built eight-story seventy key boutique hotel available for sale ($25MM).  The hotel is flagged with one of the top hotel companies in the world and therefore will generate consistent cash flows.  The hotel brand is ranked in the top tier of NYC hotels for travelers by hotel ranking sites.

This hotel will operate under a 20-year franchise agreement with a 3%-5% annual franchise fee for the use of the global hotel brand.  The seventy key boutique hotel was recently completed in May 2022 and features a restaurant, roof top bar/lounge, an athletic studio, a business center, and a market pantry.   There is also an off-site parking garage.                       

The hotel is situated in a prime corner of one of the fasting growing neighborhoods in NYC.  The hotel rooms have high quality air and light amenities and overlook one of the top artistic communities in NYC.  It’s surrounded by restaurants, fitness clubs, supermarkets, hip bars and cafes; providing guests convenient access to entertainment and amenities.  The property is conveniently located a few blocks away from multiple transit stations for easy access (10 minutes) to midtown Manhattan.            

Hotel guests and investors alike will mutually benefit from the property’s close proximity to multiple recently completed luxury residential condo complexes which adds new residents and draws new retailers to the community.  The hotel is also within walking distance to a museum and waterfront park providing incredible views of NYC and outdoor recreational activities. 

This property is ideal for long term investors who value stable branded income producing commercial assets in trendy NYC neighborhoods that still have plenty of upside potential. Hotel assets are terrific tax shelters and inflation hedges.   

Using recent comparable sales in the area we derive the following fair market value for the property:

$28MM-$30MM / $400K to $424K per key

*The owner is willing to sell this hotel for around $25MM. Price is negotiable.

Projected total annual revenue = $5MM, net annual income = $1.7MM / ADR = $189 / RevPAR = $170

Projected year 10 revenue = $6.3MM / net income $2.2MM

Oxstones Real Estate, www.Oxstones.com  CRE@Oxstones.com

Posted by on June 8, 2022.

Tags: , , , , , , , , , , , , , ,

Categories: Finding Oxstones, Investment Wisdom, North America, Oxstone Investment Commentary, Real Estate, Retirement & Savings

0 Responses

Leave a Reply

« | »

Recent Posts