Felcor Lodging Trust purchases two hotels from Morgans Hotel Group
NEW YORK, NY – May 24, 2011 – (RealEstateRama) — On behalf of Morgans Hotel Group, Jones Lang LaSalle Hotels today announced the sale of the Morgans and Royalton Hotels in New York. FelCor Lodging Trust purchased the two hotels for $140 million.
Leading the Jones Lang LaSalle Hotels team on this transaction was Executive Vice President Jeffrey Davis with Vice President Gilda Perez-Alvarado.
“This mutually beneficial, high-profile transaction is a win-win for FelCor and Morgans Hotel Group,” said Davis. “Morgans Hotel Group has secured a long-term management agreement with an institutional owner, which aligns with its long-term strategic plan, while FelCor has acquired two of New York’s most coveted boutique hotels, establishing a solid presence in the New York market.”
“The market for transactions is heating up rapidly. So far this year, there have been more than 35 upscale, full-service hotels traded in large urban areas throughout the U.S., with total transaction volume exceeding $4 billion, marking a staggering 250 percent increase, from $1.3 billion in the same period last year,” said Arthur Adler, Managing Director and CEO-Americas for Jones Lang LaSalle Hotels.
“Additionally, Manhattan is on the forefront of hotel transactions, with year-to-date sales in the city topping $1 billion, representing a quarter of national upscale urban hotel trade volumes.”
The 20-story, 114-room, Morgans Hotel is a “collector’s item” in the realm of hospitality located on Madison Avenue in Midtown Manhattan. The hotel recently underwent a $10.8 million renovation in 2008.
The 168-room Royalton Hotel is one of Manhattan’s hippest spots, located in the heart of Midtown West Manhattan. The iconic hotel has three unique penthouses, and recently re-launched a restaurant/bar, called Forty Four. It has undergone more than $22 million in renovations in the last three years.
“The New York lodging market has recovered dramatically from the downturn, posting among the highest RevPAR gains of any U.S. market in 2010. It’s driven by a 7.5 percent increase to average daily rate (ADR) — well above the national average. In 2011, the market remains at the vanguard of ADR gains, jumping nearly six percent over the prior year period, despite supply increases, proving the strength of the market,” said Gilda Perez-Alvarado. “Due to a diverse mix of hotels, broad demand generators, increasing domestic and international leisure and business traveler arrivals, the market remains at the forefront of investor interest.”
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 210 hotel specialists, operating from 37 offices in 19 countries. The firm’s advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels’ clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com.
Contact:
Kristina Paider
+1 312 498 5807
Kristina.paider (at) am.jll (dot) com
Katie Sershon
+1 312 228 3127
Katie.Sershon (at) am.jll (dot) com
