Real Estate Alert: REITs Try Quiet Approach to Sell New York Hotels
According to Real Estate Alert: Hotel REITs seeking to reduce their holdings in Manhattan are increasingly reaching out to select investors rather than running broad marketing campaigns.
Meanwhile, a general cooling in the hotel sector has many REITs looking to sell valuable properties to pay down debt or buy back stock that's trading at a discount, said Lukas Hartwich, a senior analyst at Green Street Advisors. "There are a lot of assets on the market, and I expect more trades to happen as the year goes on," Hartwich said.
Most owners are seeking a foreign buyer with a long-term investment strategy who will look past any short-term softening in fundamentals. "They will pay up for these hotels even if the numbers aren't so pretty over the next few years," said Hartwich of Green Street. "It's a top tourist city and, yes, there are some issues in the short run, but foreign buyers can feel confident that New York will be relevant in the long run."
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