Apple REIT Subsidiary in Talks for $99M Buy

NEW YORK CITY-According to an SEC filing, Richmond, VA-based Apple REIT Eight Inc.’s purchasing subsidiary Eight Hospitality Ownership Inc. has entered into a purchase contract to buy Hotel 57 here for $99 million. The seller of the more than 200-room hotel is Citylife Hotel Group, which also own ThirtyThirty Hotel and OnTheAve Hotel here.

A spokesperson for Apple REIT Cos. confirms to GlobeSt.com that they are in negotiations at this time, but is unable to disclose further information until closing. The spokesperson could not detail who was handling the negotiations, nor could she estimate when the deal will close. An unidentified source tells GlobeSt.com that the hotel will be “changing ownership in about two weeks, with possible reflagging to Renaissance.”

Hotel 57 is located at 130 E. 57th St. and is 17 stories high. According to the filing, the initial deposit under the purchase contract was $5 million and is refundable to Eight Hospitality Ownership should it elect to terminate the purchase contract during ‘review’ period. The property that the hotel is constructed on is subject to the terms and conditions of a ground lease. Under the contract, Eight Hospitality Ownership would assume the ground lease if a closing occurs.