Chelsea Holiday Inn sells at huge loss

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The company has been considering a sale since at least January, according to Trepp, and it hoped the buyer would take on its $72 million loan on the property, which was transferred to a special service early last year.

The pandemic has been devastating for the city’s hotel industry, and it’s just the latest in a string of recent Manhattan hotels that have sold at super bargain prices. RLJ Lodging Trust has sold the DoubleTree by Hilton at 569 Lexington Ave. to Hawkins Way Capital for $146 million after buying it in 2010 for about $332 million, while DiamondRock Hospitality sold the Lexington Hotel at 511 Lexington Ave. to C-III Capital Partners for about $175 million after buying it in 2011 for about $335 million.

A representative for Watermark declined to comment, and Two Kings did not immediately respond to a request for comment.

A CBRE report was optimistic about the future of New York hotels, predicting annual occupancy to reach 77.2% in 2023 and 82% by 2024 and citing returning tourists and executives on a business trip in the city. But Vijay Dandapani, president and CEO of the New York Hotel Association, pushed back hard on those predictions and said it was highly inaccurate to predict a recovery for the city’s hospitality industry anytime soon.

The value of New York hotel properties has fallen 19.6% since before the pandemic, from $32.7 billion to $26.3 billion, according to Mayor Eric Adams’ draft budget.

This story has been updated to reflect that Watermark declined to comment on the deal.


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